U.S. investors were solicited to purchase $3.2 billion of Jefferson County bonds by stockbrokers and financial advisors at firms like JP Morgan, Bank of America, Bear Stearns and Lehman Brothers. These investments were pitched to investors as ultra safe, triple AAA rated bonds that were one of the safest investments one could purchase. The bonds were portrayed as insured and only slightly riskier than a money market fund.
Jefferson County, because of misleading and deceptive representations made by brokers at JP Morgan, Bank of America, Bear Stearns and Lehman Brothers, were sold complex investments that caused massive losses to the retail investors at these firms. Stockbrokers and financial advisors at these firms then turned around and pitched these investments to firm clients as ultra safe, ultra secure, triple A rated bonds.
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