UPDATE: JPMorgan Chase Reaches Settlement with Regulators Regarding Discontinued Municipal Derivatives Activities

JPMorgan Chase & Co. JPM announced today that it reached a settlement with the Securities and Exchange Commission, the U.S. Internal Revenue Service, the Antitrust Division of the U.S. Department of Justice, the Office of the Comptroller of the Currency, the Federal Reserve Bank of New York, and a group of State Attorneys General to resolve their investigations of the conduct of certain former employees on the municipal derivatives desk, which was discontinued in September 2008. The settlement covers conduct claimed to have taken place on that desk in or prior to 2006. JPMorgan Chase does not tolerate anticompetitive activity or other violations of law. The firm assisted the government agencies in their investigations and is pleased to have resolved this matter with its regulators. The majority of the funds being paid under the settlement agreements will be distributed to municipalities and other tax-exempt issuers. The investigations focused on a small desk that was discontinued and on certain employees who are no longer with the firm. These employees concealed their conduct from management.