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Looks like the Feds are about to make another deal:

JPMorgan Chase & Co. and the Justice Department have reached a tentative $13-billion (U.S.) settlement over the bank’s questionable mortgage practices leading up to the financial crisis, people briefed on the talks said Saturday. It would be a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes.
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Follow me across the fish guts for the difference between this deal and most the Feds have made lately...

While the deal would put those civil cases to rest, it would not save JPMorgan from a parallel criminal inquiry from federal prosecutors in California, the people briefed on the talks said. Under the terms of the preliminary deal, the people said, the bank would also have to assist prosecutors with an investigation into former employees who helped create the mortgage investments.
I don't know why that investigation apparently only targets "former" employess, but something is better than nothing.
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Comment Preferences

  •  Urinal/Spittoon (14+ / 0-)

    Strange women lying in ponds distributing swords is no basis for a system of government.

    by The Baculum King on Sun Oct 20, 2013 at 12:06:05 AM PDT

  •  A 'record.' How nice. Americans love records. (0+ / 0-)

    Records equals good.

    Lessee, iirc the previous 'record' in the various frauds and fixings and launderings was a fine for about 3% of the ill-gotten take. So what are we talkin' here: 3.1%? 3.3%?


    Actual Democrats: the surest, quickest, route to More Democrats. And actually addressing our various emergencies.

    by Jim P on Sun Oct 20, 2013 at 12:14:08 AM PDT

  •  Not nearly enough for their ugly behavior. (1+ / 0-)
    Recommended by:
    DRo
  •  Jail a few.... (2+ / 0-)
    Recommended by:
    The Baculum King, happy camper

    See Jim Hightower's article where he says, "Fining banks is not a crime-stopper, for banks don't commit crimes. Bankers do. And they won't ever stop if they don't have to pay for their crimes".

    But there's an additional "crime" taking place, hidden within that billion-dollar fine that regulators levied on the bank for top-level mismanagement, which caused shareholders to lose a whopping $6 billion in a trade scandal last year. Media reports say the bank agreed to pay the fine to settle those charges, but when it's reported that "the bank" will pony up a billion dollars, who exactly is that?

    Not the bankers who committed the illegalities, but Chase's shareholders. Wow, how's that for a raw deal? The money the bankers lost belonged to shareholders, yet they're being socked for another billion to cover the bankers' fine. Imagine if you got burglarized, then were fined for being burglarized! As one law professor said, "It's not just adding insult to injury, it's adding injury to injury."

    Federal regulators say it's easier to get bankers to settle a case if they can hand the fine to shareholders, who don't even get a say in the decision. But going after the bankers, they claim, would require a jury trial — and jurors might not convict.

    Huh? What kind of bassackwards justice is that? Besides, it's ridiculous to think that jurors wouldn't jump at the chance to convict Wall Street banksters. That's a jury I'd like to serve on. Wouldn't you? Nail a couple of them, and that'd chill all of their wild finagling.

    Be the change you want to see in the world. -Gandhi

    by DRo on Sun Oct 20, 2013 at 04:21:37 AM PDT

  •  Death by a thousand cuts (0+ / 0-)

    (This is like a lottery win in odds)

    So far in the last week- assuming- this is a real number- that have agreed to 17 Billion . Before this number there were some lighter fines approved such as 400 Million. They also have multiple tracks of litigation that they had put reserves aside for this quarter of 23B.  It being October and they are already  on the hook for about 19 B, that leaves 4 billion left on their reserves.

    JPM lost money last quarter because of litigation expenses. Of course it was shrugged off as a one time event against the :Fortress Balance sheet" . By now they should put litigation as a ongoing expense with a higher reserve than bad loans.

    There won't be arrests but there is a certain inflection point when Shareholders decide the CEO just isn't worth it. We aren't there yet. But if the pace of litigation picks up in this quarter as I think it will, they may be looking at losses as far as the average shareholder can see (3-6 Months). That may be enough that they call for the board and the top management teams resignations.

    Left out there by shareholders where they can no longer threaten with systemic risk, I suspect the Manhattan USA may go after them with both feet on criminal charges. He is not like the USAs in the past who took a hands off approach. He may be the person we are looking for, but then again, remember the odds.

    “ Success has a great tendency to conceal and throw a veil over the evil of men. ” — Demosthenes

    by Dburn on Sun Oct 20, 2013 at 08:09:41 AM PDT

  •  I wish I could (0+ / 0-)

    fuck up at work and the company's stockholders would bear the punishment.

    "A lie is not the other side of a story; it's just a lie."

    by happy camper on Sun Oct 20, 2013 at 09:56:31 AM PDT

  •  JP Morgan: (0+ / 0-)

    Let me know when we actually start to arrest "Savvy Businessmen" at one of the "best run" Wall Street institutions.

    this quote:

    former employees who helped create the mortgage investments.
    Translation:  None of the true powers-that-be will be affected, arrested, or held accountable.

    As for the 13 Billion?  Look up what the pay pool was for fiscal 2012.  Look at the compensation levels.  Revenues.

    13 billion won't even cause them to hesitate to continue business as usual.

    If you want to deter corporate crime (aside from actually arresting the guys at the top who make the fucking decisions).. the penalties should exceed the revenue from such criminal activities.

    So.... a Democratic President who pushes through pro-1% / anti-worker "Free" Trade Deals is complaining about Republicans wanting to hurt the poor. Do Go On.

    by Johnathan Ivan on Sun Oct 20, 2013 at 12:07:37 PM PDT

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