The long and winding saga of Jefferson County, Alabama continues to roll on. JPMorgan (JPM), without admitting or denying guilt, has agreed to a settlement with the SEC worth more than $700 million. The charges concerned alleged unlawful pay-to-play payments to friends of public officials to win municipal bond business in Jefferson County.

It all blew up in the bank's face when the swaps moved against the county, pushing it to the edge if bankruptcy--then the media reports followed. The SEC accused two former managing directors of JPMorgan, Charles LeCroy and Douglas MacFaddin, of various violations, including charges that they paid millions in undisclosed payments to close friends of several Jefferson County commissioners in return for deals.

MacFaddin and LeCroy will fight the charges, they say. The SEC has been trying to crack down on pay to play. This could be viewed as a win, but one could argue here that there is an "approvability" issue regarding the settlement. Is Judge Jed Rakoff going to hear this? Some are arguing that the bank may have gotten off light. 

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