Fallout from a JPMorgan Chase bid-rigging scheme has resulted in a $8.6 million windfall for the Regional Transportation Authority. The RTA had hired JPMorgan previously in relation to bond sales dating back to 2004 for infrastructure projects, administrators said Thursday. Twenty-three states and the District of Columbia settled with JPMorgan recently after the bank was accused of rigging bids and fostering noncompetitive practices that subsequently defrauded local municipalities, school districts, nonprofit groups, hospitals and universities. The bank is being investigated by the U.S. Department of Justice, IRS and Securities and Exchange Commission. RTA Executive Director Joe Costello said the agency hoped to maximize the new revenues by applying for federal grants requiring matching funding. RTA Director William Coulson of Glenview recommended the agency consider never using JPMorgan again for bond work.
updated: 7/21/2011 5:42 PM
JPMorgan's woes are RTA's gain
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