JPMorgan disclosed Thursday in a quarterly report that the Securities and Exchange Commission is filing an enforcement action against it for alleged violations involving municipal derivatives transactions with Jefferson County, Ala., which is teetering on brink of bankruptcy because of its $3.2 billion of troubled sewer debt and related swaps.

On April 21, JPMorgan said that it was notified that the SEC authorized filing an enforcement action for alleged violations of federal securities law and Municipal Securities Rulemaking Board rules with respect to transactions in 2002 and 2003 with Jefferson County.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.