Funds sign JP Morgan bond deal

Pension funds yesterday signed an agreement with investment bank JP Morgan to reverse a -280 million structured bond deal at the heart of a scandal that has rocked Greece for months. A public prosecutor is investigating claims by ministers that the bond was sold to state pension funds at too high a price, but no charges have been laid. Four state funds that had bought the bonds had agreed in principle in June with JP Morgan that it should buy back the paper, which passed through the hands of several intermediaries before the pension funds bought it. JP Morgan will pay the interest for the second quarter, and the funds will receive the money on August 30. (Reuters)