The American Federation of Television and Radio Artists pension fund has sued JP Morgan, Financial News reports. The fund has alleged the bank neglected its fiduciary duties by putting money into a high-risk structured investment vehicle (SIV), Sigma, which collapsed last year costing investors over $6 billion.
The scheme’s trustees had used JP Morgan to lend out certain shares in return for collateral, invested to produce a positive return once the securities were given back. The filing states the bank invested this collateral without due consideration of the potential risk in such SIVs and has since made no attempts to resolve the situation.
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