JPMorgan Chase & Co., the second-biggest U.S. bank by assets, agreed to pay Florida $25 million to settle allegations it sold unregistered securities to a state-run municipal money-market fund that suffered a run on deposits because it held defaulted debt.
Participants in Florida’s Local Government Investment Pool will get $23 million of the settlement to reimburse them for losses in 2007 on asset-backed securities, some of which were sold by JPMorgan to the fund’s overseer, the State Board of Administration, Attorney General Bill McCollum said today in a statement. The rest will pay fines and related costs, he said.
