Saturday, February 2, 2008
First of many? Bank reimburses city for miss-selling securities
Discussion of various misselling cases. In one case a school required money for building renovations. They were talked into a credit default swap by JPMorgan Chase which gave them $750,000. "What New York-based JPMorgan Chase didn't tell them, the transcript shows, was that the bank would get more in fees than the school district would get in cash: $1 million." With the credit crunch things went wrong and the school board paid $2.9 million to JPMorgan to get out of the deal. Tax payers money for education!