Monday, September 21, 2009

Carnahan Wraps Up JP Morgan Auction Rate Securities Case

Missouri Secretary of State Robin Carnahan Release

Missouri investors received more than $28 Million in returned savings

Jefferson City, Missouri - Secretary of State Robin Carnahan announced
today that her office finalized a consent order with JP Morgan Chase &
Co., returning more than $28 million in frozen savings to Missouri
investors. JP Morgan is the seventh major firm to sign an agreement
with Carnahan's office regarding auction rate securities, bringing the
total amount returned to Missourians to over two billion dollars. Not
all firms have repaid their clients, however, and Carnahan is fighting
for those left without access to investments promised to be safe and
"same as ash."

The consent order signed today covers Missouri individual and small
business clients and was completed by JP Morgan earlier this year. The
Missouri Investor Education and Protection Fund, used for educational
initiatives across the state, will also receive an $86,000 payment
from the firm.

"I am pleased that JP Morgan has joined nearly two dozen firms
nationwide doing the right thing for their investors. The failure of
other firms to do the same is inexcusable," Carnahan said.
"Missourians with frozen savings cannot continue to wait. These
companies must be held accountable, and I will continue to pursue
resolutions that put investors first and give them access to their
savings as promised."

Carnahan has proven willing to take action where investors' interests
are not being promoted. After broker Stifel, Nicolaus and Company
failed to agree to an adequate repurchase plan, Carnahan filed a civil
enforcement action against Stifel in March for violations of state
securities laws. Stifel has since announced a drawn-out buyback plan,
but it will leave tens of millions of dollars for repurchase until the
summer of 2012.

In the coming months, the Securities Division in Carnahan's office
will finalize settlements and repurchases with several other firms. In
addition, the Securities Division has active investigations into the
auction rate securities activities of several other brokers, and
expects to announce formal actions or resolutions in many of those
matters before the end of the year.

For more information regarding investments and fraud protection, visit
the Secretary of State's online Missouri Investor Protection Center at or call the toll free Investor Protection
Hotline at 1-800-721-7996.

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