LAWSUITS NEWS & LEGAL INFORMATION
JPMorgan
Athens, GA: (Aug-23-07) Four Greek state pension funds brought charges against JPMorgan, over a controversial 280m structured bond, as part of the country's investigation into six similar instruments issued by other international banks. The confidential bond, issued last year by the Greek government, came under investigation this year by George Zorbas, head of Greece's anti-money laundering unit. Zorbas revealed that the finance ministry's accounting office had issued the instrument under a law abolished in 1998. The suit alleged that the bond was sold at an unfavorable price to the pension funds through a pre-planned chain of deals involving North Asset Management, HypoVereinsbank, a German lender, and Acropolis, a local Greek brokerage. The four funds had rejected JPMorgan's offer to repay the bond at face value in 2007.
In a settlement reached, JPMorgan signed a deal which brought to an end a five-month stand-off after the US bank offered to include the repayment of 2.75m ($3.7million) in outstanding interest. Zorbas's office is also extending its investigation to a further six structured bonds underwritten by banks including Calyon, Morgan Stanley, HSBC, BNP Paribas and Deutsche Bank, which were sold by local brokerages to Greek pension funds at inflated prices. JPMorgan said it had done nothing wrong in its underwriting of the bond and had no dealings with the pension funds. The settlement was expected to lead to a 20m loss, which JPMorgan will split with North Asset Management, the London-based hedge fund that traded the instrument. [MSNBC: STRUCTURED BOND]
Published on Aug-24-07
In a settlement reached, JPMorgan signed a deal which brought to an end a five-month stand-off after the US bank offered to include the repayment of 2.75m ($3.7million) in outstanding interest. Zorbas's office is also extending its investigation to a further six structured bonds underwritten by banks including Calyon, Morgan Stanley, HSBC, BNP Paribas and Deutsche Bank, which were sold by local brokerages to Greek pension funds at inflated prices. JPMorgan said it had done nothing wrong in its underwriting of the bond and had no dealings with the pension funds. The settlement was expected to lead to a 20m loss, which JPMorgan will split with North Asset Management, the London-based hedge fund that traded the instrument. [
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