JPMorgan reaches agreement to settle SEC mortgage probes

November 8, 2012 by · Leave a Comment
Filed under: Legal News 

This initial report is pretty thin on details and the only real reference is to an old settlement that occurred in 2010 wit a mortgage related issue.   We can be assured a major press release will be announced soon give us more details on exactly what this is regarding and if any guilt it admitted.   My bet in on “no wrong-doing” which is the trend lately in the wake of the largest financial crisis…..ever.

We didn’t get executives on the stand receiving justice, what we can hope for is real regulation and prohibits all this cowboy behavior tied to basic human greed.   If not, then it will happen again and maybe that is what it will take to put this situation into the proper perspective.   I love capitalism and finance, but it has to be done with the national and global interest in the forefront.   We use these tools to bring betterment to everyone as a whole and provides incentives for people to do the “bare maximum”.


Bloomberg – JPMorgan Chase & Co., the biggest U.S. bank, reached a settlement with regulators to resolve claims tied to its home-loan business and said it would buy back as much as $3 billion of shares.

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J.P. Morgan Securities Settles SEC Charges in Jefferson County Swap & Bond Case

November 4, 2009 by · Leave a Comment
Filed under: Legal News 

Wall Street Journal, Washington – J.P. Morgan Securities Inc. and two of its former managing directors on Wednesday settled charges with the U.S. Securities and Exchange Commission for their roles in an unlawful payment scheme that enabled them to win business involving municipal-bond offerings and swap-agreement transactions with Jefferson County, Ala.

J.P. Morgan Securities, a unit of J.P. Morgan Chase & Co., will pay a penalty of $25 million, make a payment of $50 million to Jefferson County, and forfeit more than $647 million in claimed termination fees, the SEC announced.

The settlement comes as the SEC is examining several municipal investment contracts. Jefferson County has faced credit-rating downgrades and possible bankruptcy after its investments in over-the-counter derivatives.

J.P. Morgan said in a statement that the company is pleased to have settled the Jefferson County matter.


GE to pay $50 million in fines to settle SEC fraud charges

August 4, 2009 by · Leave a Comment
Filed under: Stock Market News 

Here is my favorite quote: “GE bent the accounting rules beyond the breaking point, Overly aggressive accounting can distort a company’s true financial condition and mislead investors.” Funny how GE will get this statement made against it but nothing for many of the banks that have used off-balance sheet transactions to hide massive amounts liabilities in various derivatives.  This stuff is not even hidden, just look at the capitalization of the top 25 banks and they have a nice little line for derivative exposure (Page 22).  To be fair, GE does have a finance unit and they are treated as a bank holding company but I would like the SEC to review other institutions as well, I think many of the accounting practices used over the last 5 years needs to be seriously reviewed for there impact on investors and the financial system as a whole.

Reuters, Boston – General Electric Co will pay a $50 million civil penalty to settle charges by the U.S. Securities and Exchange Commission that it misled investors with some fraudulent accounting in 2002 and 2003.

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Bernard Madoff settles civil fraud charges with SEC without admitting wrongdoing

June 16, 2009 by · Leave a Comment
Filed under: Legal News 

Bottom-line, my gut tells me that this was purely political on the basis that if all the facts came to light, I am sure the SEC would have looked either complicit or incompetent.  Either of those findings would have reduced any remaining credibility the SEC had after this massive fraud took place for so long under their supposed “watchful” eye.

It seems to me in this country we are good at having outrage initially but the follow through has been quite lackluster.   I would really like to see some more teeth when we prosecute these white-collar and financial crimes.  Maybe after we do not have any meaningful investigations, we will see some real outrage to get our “balls” back.

News (Reuters):

Bernard Madoff, who ran the biggest investment fraud in history, was allowed to settle civil fraud charges with the U.S. Securities and Exchange Commission without having to admit any wrongdoing.

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SEC adopts new oil and gas reserve reporting standards

December 29, 2008 by · Leave a Comment
Filed under: Legal News 

I am not sure the benefit on probable and possible reserves, hopefully it will spur more investment in the sector but with that said, some investors might get duped by investing on numbers that are not the reality of what the energy company will really produce.  The average price rule will give an improved outlook on revenue.  If someone has a strong opinion for or against this, I would love to read what you have to say.


U.S. securities regulators adopted rules giving investors a more complete picture of the oil and natural gas reserves that a company holds, the Securities and Exchange Commission said on Monday.

Under the new SEC rules that are supported by the energy industry, oil and gas companies will be allowed to disclose their probable and possible reserves to investors. Current rules require disclosure of only proved reserves, but many companies provide all three.

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