SEC

Two thirds of the JPMorgan Chase & Co. (NYSE:JPM) stuff that involved the securities in question came from Bear Stearns, reports FOX Business Network (FBN) Senior Correspondent Charlie Gasparino. Gasparino further states that, “Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), Deutsche Bank AG (NYSE:AB), UBS AG (NYSE:UBS)” are all being investigated by the Securities and Exchange Commission (SEC). The reason for the further investigation with the other banks is because, “Bob Khuzami, the enforcement chief for the SEC, has said that they found other non -Bear Stearns related stuff. JPMorgan settled with the SEC for selling risky mortgage bonds from its Bear Sterns unit to investors.

Excerpts from the report are below.

On whether there will be more SEC investigations:

“From what we understand there are active investigations going on against Bank of America Corp (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), Deutsche Bank, UBS AG (NYSE:UBS), all being investigated. I think you will see fines. This is not all fines, some of it is disgorgement, penalties, whatever – all in the same area.”

On whether the SEC found other non-Bear Stearns related things:

“We should point out Bob Khuzami, the enforcement chief for the SEC, has said that they found other non-Bear Stearns related stuff in here, that’s what he said, we reported that earlier. It was mostly Bear Stearns.”

On the SEC investigations with JPMorgan and Bear Stearns:

“We should point out that two thirds of the JPMorgan Chase & Co. (NYSE:JPM) stuff that involved the securities in question came from Bear Stearns, shows you just how much of a liability Bear Stearns has. They made money off the firm, they also lost some money on the firm including this fairly sizeable settlement today about 300 million dollars.”


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