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Alleged Municipal Bond Scheme Leads to Settlement With TN, Other States

News release from attorney general’s office:
Tennessee Attorney General Bob Cooper and 24 other state attorneys general announced a $92 million agreement with JP Morgan Chase & Co. (JPMC) as part of an ongoing nationwide investigation of alleged anticompetitive and fraudulent conduct in the municipal bond derivatives industry.
As part of the multistate agreement, JPMC has agreed to pay $65.5 million in restitution to affected state agencies, municipalities, school districts and not-for-profit entities nationwide that entered into municipal derivative contracts with JPMC between 2001 and 2005. In addition, JPMC agreed to pay a $3.5 million civil penalty and $6 million in fees and costs of the investigation to the participating states. It has not yet been determined how much Tennessee and the other states will receive from the agreement.

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