JP Morgan, US Govt settle on penalties; talk of "criminal probes" all bullshit

[CountDeMoney]

JPMorgan close to $13 billion mortgage settlement
Kate Kelly and John Harwood CNBC

JPMorgan Chase, eager to put a raft of mortgage-securities litigation behind it, is close to reaching a $13 billion settlement with the U.S. government, according to people familiar with the situation.

During a late Friday call between JPMorgan Chief Executive Jamie Dimon, Attorney General Eric Holder and lawyers for both sides, the bank agreed to pay about $13 billion to settle civil cases pending with the Justice Department, the New York Attorney General, and the Federal Housing Finance Agency.

The probes are over its handling of mortgage-backed securities that plummeted in value during the housing crash of the late 2000s, according to one of these people.

Of that sum, about $4 billion resolves the outstanding FHFA issues and about $4 billion would be put into a consumer-relief fund, added that person. The balance would be put toward resolving the Justice and New York state matters.

Final details of the pact are still being worked out, however, said the people familiar with the situation, and the settlement could yet fall through.

A JPMorgan spokesman could not immediately be reached for comment.

During its protracted settlement negotiations with the government, which included a high-profile meeting in Washington last month between Dimon and Holder, the bank sought to insulate itself from criminal prosecution, said the people familiar with the matter.

But the government was unwilling to provide assurances to that effect, these people said, leaving JPMorgan with the possibility of additional criminal probes or lawsuits down the road.

JPMorgan Chase & Co.
NYSE: JPM - Oct 18 4:00 PM ET
54.30+0.09 (0.17%)

FULL-YEAR 2012 RECORD NET INCOME OF $21.3 BILLION,
OR RECORD $5.20 PER SHARE, ON REVENUE1 OF $99.9 BILLION

[Admiral Yi]

For the umpteenth time, what crimes would you like to see them charged with, Chief Warren?

[Neil]

It would be great if they charged a few bankers with fraud, but that's not super important.  What is important is that JP Morgans charter be pulled immediately.

[CountDeMoney]

Fraud, theft and charges of immoral conduct that would require severe dispositions by the Revolutionary Tribunal would be nice.

[citizen k]

Fraud, theft and charges of immoral conduct that would require severe dispositions by the Revolutionary Tribunal would be nice.

Economic terrorism.

[The Brain]

Parading without a license.

[The Minsky Moment]

How much of this relates to Bear and WaMu?

[Sheilbh]

For the umpteenth time, what crimes would you like to see them charged with, Chief Warren?

I don't know. The stuff that's been released from the LIBOR investigation is far worse than I expected. I think there's certainly possible prosecutions from the London Whale thing. This indicates that prosecutions are something the bank and the DoJ are worried about:

During its protracted settlement negotiations with the government, which included a high-profile meeting in Washington last month between Dimon and Holder, the bank sought to insulate itself from criminal prosecution, said the people familiar with the matter.

But the government was unwilling to provide assurances to that effect, these people said, leaving JPMorgan with the possibility of additional criminal probes or lawsuits down the road.

I don't like this sort of deal. It's like Medieval barons negotiating with the King the way these companies can try and settle criminal prosecutions (here) or negotiate their own tax bill (Google)

[Scipio]

I was assured that under Obama's reign, those Wall Street fat cats would suffer TR-style persecution.  Nice to see that is true.

[The Minsky Moment]

with the King the way these companies can try and settle criminal prosecutions (here)

the bank agreed to pay about $13 billion to settle civil cases pending with the Justice Department, the New York Attorney General, and the Federal Housing Finance Agency.

[grumbler]

Sheilbh, can you link me to the deal that immunizes anyone at JP Morgan from criminal prosecution, which you allege to exist?

[Sheilbh]

True

But they're trying to save themselves from prosecution and they paid $100 million and admitted wrongdoing (one day of bad acts) to 'settle' an investigation into the London Whale business. From my understanding that means the regulator involved won't be investigating whether there was price manipulation involved or taking any further actions on that.

[CountDeMoney]

I was assured that under Obama's reign, those Wall Street fat cats would suffer TR-style persecution.  Nice to see that is true.

In the end, nobody cares at all.  Hell, look at all the cunt-hate simply mentioning Elizabeth Warren stirs up around here.  Everybody loves Wall Street just the way it is:  off the leash and out of control, accountable to no one, accountable for nothing.

I hope each and every one of your 401ks melt like cheap Chinese plastic the next time your Wall Street gods roll snakeyes on the next gimmick.

[KRonn]

I was assured that under Obama's reign, those Wall Street fat cats would suffer TR-style persecution.  Nice to see that is true.

In the end, nobody cares at all.  Hell, look at all the cunt-hate simply mentioning Elizabeth Warren stirs up around here.  Everybody loves Wall Street just the way it is:  off the leash and out of control, accountable to no one, accountable for nothing.

I hope each and every one of your 401ks melt like cheap Chinese plastic the next time your Wall Street gods roll snakeyes on the next gimmick.

Warren was voted in my state Mass. I don't really care for her as we have too many left wingers, but given that she's going after the corps and people who caused some of the financial mess I give her props/credit for that. Hoping she keeps it up and gets something really going since not nearly enough has been done to bring to task people and corps. She certainly has my support on that stuff.

Also, I wonder what are thoughts on some of our Congress members causing some of the financial mess? Seems they made some of the rules, maybe played along with some financial players, which helped cause the mess?

[Admiral Yi]

True

But they're trying to save themselves from prosecution and they paid $100 million and admitted wrongdoing (one day of bad acts) to 'settle' an investigation into the London Whale business. From my understanding that means the regulator involved won't be investigating whether there was price manipulation involved or taking any further actions on that.

The London Whale was about proprietary trading, not LIBOR fixing.