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Politics : Stop the War!

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To: PartyTime who started this subject	7/28/2003 1:27:26 PM
From: James Calladine	Read Replies (1) of 21614

AMERICAN JUSTICE: BUYING YOUR WAY OUT OF JAIL Morgan, Citi to pay $255 million Wall Street banks agree to settlement to end an investigation into their dealings with Enron. July 28, 2003: 12:46 PM EDT WASHINGTON (Reuters) - J.P. Morgan Chase & Co. will pay $135 million and Citigroup Inc. will pay $120 million to settle an investigation into whether the banks helped Enron Corp. disguise loans, regulators said Monday. The settlement with the Securities and Exchange Commission will allow the two banks to avoid prosecution but will force them to alter some of their business practices. The SEC said that the money the companies agreed to pay will be used to reimburse victims of the Enron accounting fraud. Most of the money -- $236 million -- will be paid to Enron fraud victims and $19 million will go to people who lost money related to fraud at Dynegy, another energy trader. A J.P. Morgan spokesman declined to comment. A Citigroup representative was not immediately available. The settlement comes after Merrill Lynch said in February it would pay $80 million to end a probe by regulators into two 1999 Enron transactions. At issue was a deal between Enron and Merrill related to power-generating barges in Nigeria, and a series of energy trades involving Enron and Merrill's energy trading division. The transactions took place in 1999. Executives of Merrill, J.P. Morgan and Citigroup's Salomon Smith Barney unit were hauled before Congress in recent months to explain their business with Enron. A Senate panel said after hearings on the matter that regulators needed to do more to rein in so-called "structured finance" -- a hot area on Wall Street that targets accounting and tax loopholes to help corporate clients of banks save money and boost profits. Find this article at: money.cnn.com

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