JP Morgan Stock Breaks Down On News Company's Role As MF Global Lender To Be Probed
Not an hour after we asked who gave permission to MF Global estate to sell Italian bonds to JPM (which was a lender to MF Global, discussed extensively here) at preferential terms and we get the following headline from Bloomberg:
JPMORGAN ACTIONS AS MF LENDER LIKELY TO BE PROBED: LIQUIDATOR
Needless to say, we are quite happy. Someone who isn't however, are JPM's shareholders, as the stock just took out the lows on the news.
Some more from Bloomberg:
The liquidator of the MF Global Inc. brokerage said that “certain” actions of JPMorgan Chase & Co. (JPM), a lender to the broker-dealer’s parent, “are likely to be the subject of investigation.”
The trustee, James Giddens, said he would “act with the respect to” those actions to recover money for brokerage customers if necessary. He didn’t specify what the actions were in a court filing yesterday.