The SEC charged J.P. Morgan Securities with misleading investors about a CDO tied to the U.S. housing market. J.P. Morgan agreed to pay $153.6 million to settle the charges. The SEC alleged that J.P. Morgan did not disclose that a hedge fund that helped select assets for the CDO portfolio and had a short position in over half of the assets. Nearly all investors lost their entire investments. As part of the settlement, harmed investors will receive full repayment of their losses.