(JPM) JPMorgan Chase & Company Sues Former Executive

December 29th, 2009

JPMorgan Chase & Company (JPM) said on Monday that it has sued a former banking executive who was arrested on criminal charges last year in Argentina. The executive was accused of stealing $2.8 million from a customer’s account. JPMorgan fired the executive on May 30, 2008, and reimbursed its customer.

JPMorgan, the second-largest U.S. bank, filed its civil lawsuit on Monday against the former vice president Hernan Arbizu after his arrest in Jul 2008. JPMorgan accused Arbizu for arranging funds to be wired to a customer account at UBS AG (UBS), from which he had stolen money. Arbizu was in charge of serving wealthy clients in Argentina and Chile.

JPMorgan warrants held by the U.S. government were sold for $936.1 million on Dec 11, 2009. The Treasury Department’s second auction of warrants held by the Troubled Asset Relief Program (TARP) drew $10.75 each for 88.4 million warrants.

The US Treasury Department transferred $25 billion of funds to JPMorgan on Oct 28, 2008, via the TARP. This was the fifth largest amount transferred under the 2008 TARP bailout bill.

The full repayment of the bailout money by JPMorgan releases it from government intervention and thus inspires our confidence in the stock. While we anticipate continued synergies from the company’s diversification and strong capital position, we believe increasing provisions and worsening credit quality drag future earnings.

On Monday, the shares of JPMorgan closed at $41.72 on the New York Stock Exchange, down 0.4% from last closing price.

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(JPM) JPMorgan Chase & Company Sues Former Executive

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