J.P. Morgan Nears Enron Settlement

NEW YORK -- J.P. Morgan Chase & Co. could soon reach two settlements with U.S. regulators and pay as much as $175 million to resolve allegations that it wrongly helped Enron Corp. to polish up its finances, according to a published report Tuesday.

J.P. Morgan is negotiating settlements with the U.S. Securities and Exchange Commission and with Robert Morgenthau, the Manhattan District Attorney, according to The Wall Street Journal.

Morgenthau's office has been looking at whether the Wall Street firm allegedly helped Enron hide debt and prop up its financial statements before the energy company filed for bankruptcy in late 2001. The bank's settlement with Morgenthau probably won't include criminal charges against J.P. Morgan, sources familiar with the matter told The Journal.

The deal may involve a payment of about $25 million to avoid prosecution, and pledges by J.P. Morgan to alter its business practices, the paper reported.

-- NYSSCPA.org News Staff

Posted on 7/15/03