Bankers to pay $417 million to settle fraud charges

(November 16) JPMorgan Chase and Credit Suisse have agreed to pay $297 million and $120 million respectively to settle civil charges brought by the SEC related to financial misbehavior from 2005 through this year.

The money goes to harmed investors. Credit Suisse and Bear, Sterns (now part of JPMorgan Chase) were accused of mishandling the required buy-backs of those subprime mortgages that defaulted within the first three months. Separately, Credit Suisse and JPMorgan Chase were said to have misrepresented the risk of billions of dollars of subprime mortgage-backed securities they sold to investors. The companies admit no wrongdoing. A parallel case recently brought by New York Attorney General against the former Bear, Sterns proceeds.

(Washington Post at www.washingtonpost.com)