Koster announces opt-in for Wachovia settlement

Bryan Cohen Aug. 6, 2012, 9:25am


JEFFERSON CITY, Mo. (Legal Newsline) - Missouri Attorney General Chris Koster announced on Friday that approximately 17 Missouri not-for-profit entities, school districts and municipalities may opt-in to a $1 million settlement with Wachovia.

The opt-in is the third in a series of settlements for allegedly fraudulent and anti-competitive conduct in the industry of municipal bond derivatives. As part of a prior settlement with Bank of America, 46 entities in the state have received $3.1 million and 10 additional entities have the option to recover more than $800,000 from JPMorgan Chase.

"I am pleased to return this money to Missouri school districts and cities," Koster said. "My office will continue to force companies that violate the law to fully compensate those entities they cheated."

Koster has resolved similar claims with GE Funding Capital Market Services Inc. and UBS. Victims should be able to recover money from the settlements later in 2012.

In April 2008, Missouri and several other states started looking into allegations that some of the largest financial institutions in the United States engaged in schemes to rig bids and commit other fraudulent, unfair and deceptive conduct in the municipal bond derivatives market. The matter resulted in settlements with GE Funding Capital Market Services Inc., UBS, Wachovia, JPMorgan Chase and Bank of America and is still ongoing.

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