JP Morgan forks out $722 million to settle corruption case
It was a big scandal: JP Morgan Chase was accused of bribing friends of county bosses in Jefferson County, Alabama. It would have been just a usual corruption thing: a big bank pays the guys who can sway the municipal bonds business their way. So far, so usual. The proverbial hit the fan when it turned out Jefferson County was $3.9 billion in debt, and it almost became the biggest municipal bankruptcy in the nation’s history. What would have been kept under wraps forever was now in plain sight and it wasn’t pretty. And in its usual manner, JP Morgan did not admit or deny any wrongdoing, but agreed to pay a $25 million civil fine, while another $50 million went to the county. JP Morgan also forfeited $647 million in termination fees it claimed the county owed it. Ouch! Read more: New York Times
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