Business

UK to receive portion of Chase bid-rigging settlement

The University of Kentucky will receive $66,000 from a settlement between JPMorgan Chase and the U.S. Securities and Exchange Commission over allegations of bid-rigging.

JPMorgan Chase is paying $211 million overall after admitting that its J.P. Morgan Securities division rigged dozens of bidding competitions to win business from state and local governments. The division made at least 93 secret deals with companies that handled the bidding processes in 31 states, federal officials said last week. Those deals allowed the bank to peek at competitors' offers.

The issue with UK involved a series of bonds totaling $18.695 million dating to May 2001. The bonds were used for construction of the Peter P. Bosomworth Health Sciences Research Building and utility infrastructure.

Banks help municipalities and universities invest the money they raise from bond offerings so that they can earn interest before paying for projects. They compete by submitting to state and local governments the best yield they can offer.

Also, the government of Henderson County in Western Kentucky will receive $224,000 as part of the settlement.

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