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Bank
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What They Did Wrong
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Legal Status
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Citigroup
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Enron shareholders had argued that Citigroup helped Enron to set up offshore companies and shady partnerships to exaggerate the energy trader's cash flow.
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In July 2003, Citigroup agreed to pay $120 million to settle SEC allegations that it helped Enron commit fraud. In June 2005, Citigroup agreed to pay $2 billion to resolve investors' claims that it helped hide losses at Enron Corp.
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J.P. Morgan Chase
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Enron shareholders had argued that Morgan Chase helped Enron to set up offshore companies and shady partnerships to exaggerate the energy trader's cash flow.
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In July 2003, J.P. Morgan Chase agreed to pay $135 million to settle SEC allegations that it helped Enron commit fraud. In June 2005, J.P Morgan Chase agreed to pay $2.2 billion to resolve investors' claims that it helped hide losses at Enron Corp. In August 2005, J.P. Morgan Chase agreed to pay $350 million to settle claims that it and other banks helped Enron’s former management to defraud Enron stockholders and current creditors.
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Canadian Imperial Bank of Commerce (CIBC)
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Enron shareholders had argued that CIBC helped Enron to set up offshore companies and shady partnerships to exaggerate the energy trader's cash flow.
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In August 2005, Canadian Imperial Bank of Commerce has agreed to pay $2.4 billion to resolve investors' claims that it helped hide losses at Enron and an additional $274 million to settle a lawsuit brought by Enron.
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Merrill Lynch
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Enron shareholders and the SEC argued that Merrill Lynch was helping Enronmanipulate its income statement by setting up sham trades and investments.
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In February 2003, Merrill Lynch paid $80 million to resolve civil charges that it aided Enron in fraudulently overstating earnings.
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Lehman Brothers
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Investors, including the University of California argued that Lehman Brothers helped Enron manipulate its income statement.
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In November 2004, Lehman Brothers paid $222.5 million to investors over the company’s participation in the sale of Enron notes shortly before the company went bankrupt.
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Bank of America
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Investors argued that Bank of America helped Enron manipulate its income statement.
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In July 2004, Bank of America paid $69 million to investors who had billions of dollars of losses related to Enron’s collapse.
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Toronto Dominion
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Investors argued that Toronto Dominion helped Enron manipulate its income statement.
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In August 2005, Toronto Dominion agreed to pay $130 million to settle a lawsuit alleging it helped Enron’s former executives defraud shareholders.
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