![]() |
![]() |
|||||||||||||||
![]() |
|
![]() |
![]() |
ENFORCEMENT PROCEEDINGSIn the Matter of JPMorgan Chase & Co.On March 27, the Commission issued an Order Instituting Cease-And-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings and Imposing a Cease-And-Desist Order (Order) against JPMorgan Chase & Co. The Order finds that JPMorgan Chase and Bank One Corporation, which merged into JPMorgan Chase in 2004, each served as asset-backed indenture trustees for certain special-purpose subsidiary programs (programs) of National Century Financial Enterprises, Inc. (NCFE), formerly a Dublin, Ohio healthcare financing company, during the approximate period 1999-2002. The Order also finds that, at the instruction of NCFE, JPMorgan Chase and Bank One made transfers between reserve accounts in the programs that contradicted NCFE's representations to investors about how the reserve accounts would be used and contravened the requirements of the indentures governing the programs. In addition, the Order finds that pursuant to NCFE's instructions, JPMorgan Chase and Bank One made month-end transfers of huge amounts of reserve account funds and that these transfers helped NCFE mask substantial and growing reserve account shortfalls. The Order further finds that in participating in the month-end transfers that were contrary to the requirements of the indentures, JPMorgan Chase and Bank One were negligent and should have known that NCFE was misusing the month-end transfers. Based on the above, the Order finds that JPMorgan Chase was a cause of NCFE's violations of Section 17(a)(3) of the Securities Act, requires JPMorgan Chase to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act, and orders JPMorgan Chase to pay disgorgement of $1,286,808.82 and prejudgment interest of $711,335.76. JPMorgan Chase consented to the issuance of the Order without admitting or denying any of the findings therein. (Rel. 33-8906; File No. 3-13000) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change (SR-NYSEArca-2008-34) filed by NYSE Arca relating to the implementation of phase two of the Options Penny Pilot has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57559) A proposed rule change (SR-Amex-2008-26) filed by the American Stock Exchange relating to the elimination of the options marketing fee related to P/A Orders that are routed via the Options Linkage for execution on an away options exchange has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57562) A proposed rule change (SR-NASDAQ-2008-022) filed by The NASDAQ Stock Market to modify the rules governing the operation of the Nasdaq Options Market has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57564) A proposed rule change (SR-BSE-2008-20) filed by the Boston Stock Exchange relating to the implementation of Phase II of the Penny Pilot Program has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57566) A proposed rule change (SR-Phlx-2008-25) filed by the Philadelphia Stock Exchange relating to the implementation of Phase II of the Penny Pilot Program has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57567) A proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2008-32) related to Off-Floor DPMs has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57568) Proposed Rule ChangeThe Commission issued notice of a proposed rule change (SR-NYSEArca-2008-29) and Amendment No. 1 thereto filed by the NYSE Arca, through its wholly owned subsidiary, NYSE Arca Equities, Inc., pursuant to Rule 19b-4 of the Securities Exchange Act of 1934 to amend the eligibility criteria for components of an index underlying Investment Company Units. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57561) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2008/dig032808.htm
|