Try digitalPLUS for 10 days for only $0.99

Business

Business

Md. will share in $75 million bond-derivatives settlement

Maryland will share in a $75 million settlement that state attorneys general across the country negotiated with JPMorgan Chase & Co. to resolve allegations of bond derivative bid-rigging that defrauded states, counties and nonprofits, the state said Thursday.

The Maryland attorney general's office said it was not yet clear how much would go to each of the 25 states involved in the settlement. But about 10 agencies and nonprofits in Maryland are expected to receive money, including the Johns Hopkins Hospital and the University of Maryland Medical System.

The JPMorgan agreement was part of a $228 million settlement jointly negotiated with federal agencies about the bank's actions in the municipal bond derivatives market, and it came on the heels of settlements with Bank of America and UBS.

Tax-exempt entities sell municipal bonds to pay for construction and other projects. Between the sale and the point that the money needs to be spent, agencies and nonprofits can use bond derivatives to invest the funds and earn a return.

The state attorneys general say JPMorgan, other financial giants and brokers rigged bids from the late 1990s through 2005 to profit at the expense of agencies and nonprofits, which received less money as a result.

"The investigations focused on a small desk that was discontinued and on certain employees who are no longer with the firm," JPMorgan said in a statement Thursday. "These employees concealed their conduct from management."

jhopkins@baltsun.com

twitter.com/realestatewonk

Copyright © 2015, The Baltimore Sun
Related Content
  • Baltimore People on the Move archive

    Baltimore People on the Move archive

    Readers submit photos and information on employees who have recently been promoted, hired or honored at area businesses. Select photos will be published in the Maryland Business section of Tuesday editions of The Baltimore Sun. Caption size is limited and only photos are accepted in this feature....

  • Health Professionals on the Move: June 2015

    Health Professionals on the Move: June 2015

    Readers submit photos and information on medical professionals who have recently been promoted, hired or honored. Select photos will be published in the Health and Medicine section of Sunday's edition of The Baltimore Sun. Only photos are accepted. (Caption size is limited.)

Comments
Loading

75°