JPMorgan (NYSE:JPM) Settles with Florida for $25 Million over Muni Fund

JPMorgan Chase & Co. (NYSE:JPM) has reportedly settled with Florida for $25 million over the allegations it faced over selling unregistered securities to a state-run municipal money-market fund.

Ultimately the fund suffered a run on it because of holding defaulted debt.

Those invested in the Local Government Investment Pool of Florida will receive $23 million of the settlement and the rest will be paid for costs and fines related to the issue.

State Board of Administration, Attorney General Bill McCollum, said, “This settlement is part of the state’s continued efforts to secure the maximum valuation of investment securities held by the SBA.”

Some of the securities had been sold to the State Board of Administration by JPMorgan.

The run on the fund resulted in it being frozen, which kept some communities from having access to the capital in order to pay expenses and workers.

The fund has been renamed to Florida Prime.

JPMorgan was trading at $42.02, up $1.02, or 2.49 percent, as of 3:02 PM EST.