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Banks Paying Restitution for Bid Rigging

Restitution is on the way for several local government agencies and nonprofits victimized in a bid-rigging case involving major banks.

The North Penn Water Authority is getting more than $197,000 and Ursinus College is getting more than $12,000 from JP Morgan Chase.  The North Wales Water Authority is getting more than $23,000 and The Horsham Water and Sewer Authority is getting more than $4,000 from the Bank Of America.  The Towamencin Township Infrastructure Authority is getting more than $14,000, The Hatfield Township Municipal Authority is getting more than $7,000 and Gwynedd-Mercy College is getting more than $18,000 from the same bank.

Pennsylvania Attorney General Linda Kelly says a number of banks, brokers and others manipulated the bidding process, causing the victims to pay higher fees and get lower interest rates when they invested or tried to protect the proceeds of tax-exempt bonds.
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