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DOJ Shakes Down JPM/Chase For Another $13B

From Reuters:

JPMorgan says ‘mea culpa’ in $13 billion settlement with U.S.

By Aruna Viswanatha and David Henry and Karen Freifeld | November 19, 2013

WASHINGTON/NEW YORK (Reuters) – JPMorgan Chase & Co said it routinely overstated the quality of mortgages it was selling to investors, and it agreed to pay $13 billion to settle related charges with the U.S. government, federal officials said on Tuesday.

And never mind that this ‘admission’ came with a gun to their head. That forcing them to admit their sins was a requirement of the Obama administration.

The behavior that the largest U.S. bank admitted to, authorities said, is at the heart of what inflated the housing bubble: lenders making bad mortgages and selling them to investors who thought they were safe. When the loans started turning bad, investors lost faith in the banking system, and a housing crisis turned into a financial crisis…

Yes, that is exactly what happened. And it had nothing to do with the government forcing these banks to give mortgages to people who could not afford them. And the banks trying to protect themselves from these toxic mortgages.

The civil settlement marks the end of weeks of tense negotiations between JPMorgan Chase, which is looking to move past the legal issues that have plagued it for more than a year, and the U.S. government, which is under pressure to hold banks accountable for behavior that led to the financial crisis…

The government isn’t under any pressure. This is just a continuation of Obama’s war on capitalism. This is Occupy Wall Street with the mask off.

JPMorgan said it has set aside all the funds it needs to cover the settlement, meaning the deal will have no impact on its earnings…

And never mind what this cost will just be passed on to its customers. That is just more of the kind of redistribution of income that Obama loves.

The deal resolves most of its mortgage issues with federal authorities, the bank said…

If they believe that, they are fools. As long as people are willing to pay, blackmailers and shake down artists never stop.

And, if you need proof, there is this from the Associated Press:

JPMorgan $13B deal may not end bank’s legal woes

By MARCY GORDON, KEN SWEET and PETE YOST | November 19, 2013

WASHINGTON (AP) — The $13 billion settlement that JPMorgan Chase agreed to Tuesday is the largest ever between the Justice Department and a corporation. Yet it isn’t likely the end of the bank’s legal troubles over the risky mortgage securities it sold before the financial crisis.

JPMorgan has several lawsuits pending against it and the mortgage businesses it bought from Bear Stearns and Washington Mutual in 2008. There’s also an ongoing criminal investigation led by the office of U.S. Attorney Benjamin Wagner in Sacramento, Calif.

The bank may be negotiating or litigating for years and has set aside $23 billion to cover those costs…

"These things are never ‘one and done,’ and they’ll likely be more civil charges," said Erik Oja, an equity analyst with Standard & Poor’s who covers the U.S. banking industry…

The deal also included settlements with New York, California and other states. It was reached after months of negotiations and could serve as a template for similar settlements with other big banks…

Who have already been shaken down for billions. But that won’t stop Obama from going back to the well. While he continues to demand that they make even more bad mortgages.

This article was posted by Steve on Wednesday, November 20th, 2013. Comments are currently closed.

One Response to “DOJ Shakes Down JPM/Chase For Another $13B”

  1. Reality Bytes says:

    Obama’s Washington lives by “The wrestling’s fake but the money is real” – Vince McMahon CEO World Wrestling Federation.

    Holder nails Chase with a double nelson.

    Chase recovers with another round of QE.

    Obama body slams AIG

    AIG gets tax payer subsidies for losses incurred covering Obamacare.



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