The Securities and Exchange Commission is looking into whether JPMorgan Chase failed to disclose to investors that it allowed a hedge fund to select the underlying assets for a collateralized debt obligation, which the fund then bet against, a source said. Regulators have been investigating how Wall Street securitized mortgages and then sold them to investors. "We, like other firms, have received inquiries from the SEC related to collateralized obligations," said Kristin Lemkau, a representative of JPMorgan. "We are cooperating fully with these inquiries."

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