JPMorgan Chase & Co. admitted one of its divisions rigged dozens of bidding competitions to win business from state and local governments.
The headquarters for JPMorgan Chase & Co., left, is shown in New York. BOSTON — Massachusetts is to receive about $2 million of a $211 million settlement that JPMorgan Chase & Co. has agreed to pay after admitting one of its divisions rigged dozens of bidding competitions to win business from state and local governments.
The state Attorney General's office says widespread price-fixing and bid-rigging deals allowed the bank to see competitors' offers to municipalities and nonprofits investing money raised from bond offerings.
Banks compete for municipalities' business by submitting the best yield they can offer.
Authorities allege the bid-rigging deprived governments of a true competitive process that would produce the best returns on their investments.
JPMorgan Chase agreed to pay $92 million to local governments and nonprofits in 24 states to repay for the artificially low rates of return or high rates of interest the investors paid.