Goldman and JP Morgan cut deals with the SEC

Posted On: July 5, 2011 by Law Offices of Ralph Behr

Is beauty truth, or truth beauty or does it matter to JP Morgan? The SEC began legal action against JPMorgan Securities for not disclosing material facts to investors about a CDO vehicle. Sounds familiar? It should because recently Goldman Sachs was taken to the woodshed over the same issue. Not to worry, the woodshed won’t hurt too much as the money is small.
JPMorgan settled with a $156.3 million dollar check, Goldman Sachs settled for $550 million dollars. Whasss up? It’s all about failing to inform investors that a hedge fund was created and they were short. Oooopps.
No executives were tagged on this one and the penalty was corporate, so no real pain, and no changes. The street goes on and on and on.
The only refutation came from commentators who didn’t like the disparity….between $550 million and $156 million. Bloomberg spoke on this saying JP Morgan was given favored treatment, others pointed out, correctly, the differences in the case(s).
The SEC said nothing and went back to what it does so well…..doing very little.