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Here Is The Reason For JPM's Negligible Litigation Reserve: You

Submitted by Tyler Durden on 07/14/2011 09:28 -0400

For all those asking, there is just one little footnote that explains all you need to know why "JP Morgan is not Bank of America"...

Translation: unlike BAC, which is on the hook for billions in litigation payments and other private label exposure, the party funding the same exposure at JP Morgan is.... you (but that is "contested" by the FDIC and its former boss Sheila Bair who recently found religion, but just a little too late).

h/t Manal

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Thu, 07/14/2011 - 09:29 | 1455682 slaughterer

You, bitchez

Thu, 07/14/2011 - 09:34 | 1455703 Vergeltung

lol

Thu, 07/14/2011 - 09:47 | 1455745 Fish Gone Bad

I woke up this morning and had this gnawing sensation that I was on the hook for some piece of shit bank. Now I know its JPM. Fuck JP Morgan.

Thu, 07/14/2011 - 09:57 | 1455772 Stax Edwards

This is why it behooves JPM to go all the way to foreclosure on deficient mortgages. No loan workouts, no short sale, no principal reductions. Getting paid 100 cents on the dollar for all that crap mortgage paper requires foreclosure. FDIC guarantees it.

Thu, 07/14/2011 - 10:21 | 1455870 kaiserhoff

Exactly, which is why all of this talk about principle write-offs is only bumping of gums. Who audits this shit? Are accounting firms the next enablers, like MBIA, the rating agencies, and AIG, too important to the ponzi to fail?

Thu, 07/14/2011 - 10:31 | 1455903 kaiserhoff

DELOITTE TOUCHE, I thought it would be someone really stinky like Price or Ernst.

Thu, 07/14/2011 - 11:11 | 1456086 I Am The Unknow...

oh no, no, not at all.....Toilette Douche is far stinkier

Thu, 07/14/2011 - 10:59 | 1456024 eatthebanksters

What neither of you realize is that the banks can make substantial principal write downs, keep people in their homes (thereby reducing the ratio of vacant homes to qualifiend buyers, ergo a reduction of supply) and actually come out ahead better finanacially than if they continue down the foreclosure path. If you did you homework you would find this to be true. Their big big argument is moral hazard, but I have a hard time with that one...how about the moral hazard of writing millions of shitty loans? How about the moral hazard of selling distressed notes at 30 to 40 cents on the dollar when the people in the homes could afford a mortgage at a 60 to 70 cent on the dollar principal reduction. Why the taxpayer is getting soaked for the difference as the banks are settling claims agains them for 5 to 10 cents on the dollar.

Thu, 07/14/2011 - 09:30 | 1455687 hugovanderbubble

-Silver Derivative Book Losses: 12.Bn$

-European Debt Exposure 15.Bn$

-CDS market completly ineffective cos Re-profiling...

SELL JPM

Thu, 07/14/2011 - 09:50 | 1455758 malikai

-Silver Derivative Book Losses: 12.Bn$

-European Debt Exposure 15.Bn$

-CDS market completly ineffective cos Re-profiling...

Translation: JPM up 35% on FED liquidity injection.

Thu, 07/14/2011 - 09:56 | 1455771 Sudden Debt

SELL JPM?!

WHO THE HELL BOUGHT JPM?!

Thu, 07/14/2011 - 10:01 | 1455789 SilverDosed

Pfft, this isnt Italy, you dont actually have to own it to sell it per JPM's rules.

Thu, 07/14/2011 - 10:08 | 1455807 Cash_is_Trash

The same JPM that raped the Fed's Discount Window?

The bank with the massive short positions in silver?

The ones who are snapping-up the metals warehouses around Detroit?

Naaaahhhh

Thu, 07/14/2011 - 11:37 | 1456213 Hard1

WTF man!! JPM is not BAC, BAC is not Greece, Greece is not Argentina

Thu, 07/14/2011 - 09:34 | 1455705 MiningJunkie

Jamie has us all "gamed" masterfully...

Thu, 07/14/2011 - 09:49 | 1455754 Slartebartfast

About as "masterfully", as any two bit corner crook. Know any of those? I do. They could all eat Jamie for lunch. He's a stuffed suit dooface.

Thu, 07/14/2011 - 10:23 | 1455878 Bay of Pigs

What? I don't know what you're looking at.

Legs Dimon and his firm literally have the Keys to the Castle. They are running this show.

Thu, 07/14/2011 - 09:35 | 1455707 TorchFire

Same could be said for the whole Fed Reserve system, but it was previously a reality guarded by fear of discovery. Now they simply state it in writing since we clearly are a nation of pussies.

Thu, 07/14/2011 - 09:41 | 1455727 I Am The Unknow...

Put me in for Pussy Default Obligations (PDO's). I'm sure that in my case the premium will be very high!

Thu, 07/14/2011 - 09:36 | 1455712 yabyum

JPM, If silver breaks fifty, your ass is ours!

Thu, 07/14/2011 - 09:49 | 1455751 mayhem_korner

Ag pullin' another nice green fatty today. I think we're moving toward DefCon 2 on the Panic meter.

Thu, 07/14/2011 - 09:40 | 1455716 SheepDog-One

He might just be crazy enough to DO it!

?The Health Care Hustle?‏ - YouTube

Thu, 07/14/2011 - 09:43 | 1455733 Bob

No way, Jose.

Thu, 07/14/2011 - 09:57 | 1455775 augie

+1 lol

DO WHAT HE SAAAYYY DO WHAT HE SSSAAAY!!!

Thu, 07/14/2011 - 09:38 | 1455718 Bansters-in-my-...

Die JPM......

Fucking Rockefeller goons...

Thu, 07/14/2011 - 09:41 | 1455724 Paul Thomason

You have got to fucking kidding me.

I have been involved in preparation and filing for listed companies - you can't just say 'we don't like the look of this stuff so we won't tell you about it'.

You have got to be fucking kidding me.

These guys are pond scum and should be in jail.

Thu, 07/14/2011 - 10:09 | 1455811 Founders Keeper

[...you can't just say 'we don't like the look of this stuff so we won't tell you about it'.]---Paul Thomason

Agreed.

You'd have to be a fool to believe any of the numbers publicly released from the banks.

Thu, 07/14/2011 - 09:40 | 1455725 alien-IQ

why it is that Chase Bank branches are not set ablaze across the nation on a daily basis will forever remain a mystery to me.

Thu, 07/14/2011 - 09:41 | 1455728 SheepDog-One

Ive got a Wells Fargo 'Operation Gunrunner, Fast n Furious' branch right down the street....Im thinkin about it.

Thu, 07/14/2011 - 09:45 | 1455737 Commander Cody

People think that their money is actually in there. If they only knew the truth.

Thu, 07/14/2011 - 09:48 | 1455748 JohnG

Drive by. That's the way to do it.

Thu, 07/14/2011 - 09:41 | 1455729 Jim in MN

LOL, Whoooo-hooo, we're rich! Rich I say! 07-14 09:35: JPMorgan (JPM) CEO says banking industry to have "huge excess capital" in 12 months

Thu, 07/14/2011 - 09:43 | 1455732 SheepDog-One

Blowhorn cheerleaders giddy with excitement and praise of JPM their puppet masters.

Thu, 07/14/2011 - 09:48 | 1455749 svc101

SOP: privatize profit, socialize risk.

Thu, 07/14/2011 - 10:10 | 1455818 Cash_is_Trash

As noted by Chomsky long ago.

I saw a video of him in the 80's talking about private gain and public loss.

Fruition bitchezz

Thu, 07/14/2011 - 09:48 | 1455750 SheepDog-One

All is well as markets flush green basking in QE expectations, never even a hint of red, baking it in however many times over. Insanity.

Meanwhile silver is just pennies away from $40.

I wouldnt be at all surprised to hear Bernank downplay QE today to put a whoopin on PM's.

Thu, 07/14/2011 - 09:54 | 1455767 SilverDosed

+1 on the possible QE3 downplay today. The past two days have obviously been a test balloon, can easily be reversed with the right empty comments today.

Thu, 07/14/2011 - 09:55 | 1455769 r101958

....or maybe a huge silver deposit found in Zimbabwe or somewhere?

Thu, 07/14/2011 - 11:28 | 1456161 viahj

you certainly called that one Dog!

Thu, 07/14/2011 - 09:48 | 1455753 Bartanist

Sheila now realizes that she got screwed more than just once by Jamie.

Thu, 07/14/2011 - 09:52 | 1455763 props2009

http://gmbpost.com/investment-news/iraq-is-next-wealth-builder-says-nyti...

Interesting Iraq as next wealth builder

Thu, 07/14/2011 - 10:58 | 1456025 tip e. canoe

SKI IRAQ

http://www.dangerousbreed.net/catalog/popup_image.php?pID=32

Thu, 07/14/2011 - 09:53 | 1455766 r101958

'JPMorgan’s Quarterly Profit Rises 13%, to $5.4 Billion'. I guess we all know where a fairly large portion of that profit came from? Just couldn't be from taking silver down from 48 to 34.

Thu, 07/14/2011 - 09:54 | 1455768 Momauguin Joe

Heard a radio ad this morning on WFAN. JPM Chase is offering cash back "rewards" for their mortgagees if they open up a Checking Account with Chase. Up to $500 annually! You can use the money for whatever; go to a ballgame, buy some golf clubs or even take golf lessions, says the announcer, as a window is heard smashed in the background. Chutpah, itz....

Thu, 07/14/2011 - 10:02 | 1455790 wang

James Dimon as some in the financial media (Tom Keene are you reading this) have rebranded him is headed for the Treasury just as soon as he can determine if O will be re-elected.

The media cheerleading and lack of critical analysis is beyond sickening. Is it possible that Mayor Mike has gotten advice from Immelt on how to telegraph his poltical preferences to his editors and onair "talent".

Thu, 07/14/2011 - 10:02 | 1455792 I Am The Unknow...

If ANYBODY (hint, hint Tyler) here at ZH wants to watch The Bernankster quiver his lip today at 10:00 am, here's the C-Span link:

http://www.c-span.org/Live-Video/C-SPAN3/

I HOPE (wink, hint, wink hint hint) that Tyler puts up a post for this because we sure did have fun yesterday....

Thu, 07/14/2011 - 10:10 | 1455809 wang

Thu, 07/14/2011 - 10:07 | 1455802 realitybiter

Just Print More!!!!

Jiggering PM's???

Jamie Pukes Money?

Jiant political maneuvering

Thu, 07/14/2011 - 10:18 | 1455850 Catullus

The listed it under intangible goodwill: Majority Ownership Stake in US Justice Department.

Thu, 07/14/2011 - 11:12 | 1456091 karzai_luver

+blind bitchezzzzzz!!!

Thu, 07/14/2011 - 10:30 | 1455902 bigwavedave

if there existed a 'hit list' he would be close to the top of it. do you think he knows this or not? just wondering......

Thu, 07/14/2011 - 11:03 | 1456046 sbenard

We're screwed! And JPM is screwing us!

Thu, 07/14/2011 - 11:13 | 1456094 karzai_luver

foreplay--da rubbah is still on.

bitchezzzz -- roll ovah!

Thu, 07/14/2011 - 11:17 | 1456117 tip e. canoe

anyone see Chase's new ad campaign saluting savers?

how bout this one:

THE WAY FORWARD -- See what else we're doing to help communities move forward

http://www.jpmorganchase.com/corporate/Home/moving-communities-forward.htm

then there's this gem:

www.chasemilitary.com

Thu, 07/14/2011 - 11:24 | 1456145 sbenard

This is why the TPTF banks MUST be broken up! They're too big to control and too big to manage!

Thu, 07/14/2011 - 11:50 | 1456274 iinthesky

Fraudclosure... the final words, NO FUCKING STANDING. the crap they all sold to Maiden Lane XX removed any security intrest in those notes which they probably sold way before that anyhow.. its a massive fraud. If Nyone has standing to forclose its either the federal reserve system or treasury.. never seen them in the fuckin case caption.. have you?

What the hell...

Thu, 07/14/2011 - 13:03 | 1456586 CoolBeans

....Ah, but just a drop in the proverbial bucket. I can hear 'em know, "Would you like this in cash or check?"

http://sec.gov/litigation/litreleases/2011/lr22031.htm

U.S. Securities and Exchange Commission Litigation Release No. 22031 / July 7, 2011 Securities and Exchange Commission v. J.P. Morgan Securities LLC, Civil Action No. 11-cv-03877-WJM-FM (D.N.J. July 7, 2011) SEC Charges JPMS with Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds J.P. Morgan to Pay $228 Million to Settle Charges By SEC, Others

The Securities and Exchange Commission today charged J.P. Morgan Securities LLC (JPMS) with fraudulently rigging at least 93 municipal bond reinvestment transactions in 31 states, generating millions of dollars in ill-gotten gains.

To settle the SEC’s fraud charges, JPMS agreed to pay approximately $51.2 million that will be returned to the affected municipalities or conduit borrowers. JPMS and its affiliates also agreed to pay $177 million to settle parallel charges brought by other federal and state authorities.

Thu, 07/14/2011 - 13:48 | 1456723 Bastiat

There are a number of class action suits against all the big banksters for this kind of thing. Those suits get much easier when the plaintiff can rely on SEC findings.

Thu, 07/14/2011 - 13:36 | 1456709 Bastiat

Deleted -- CoolBeans beat me to it.

Thu, 07/14/2011 - 14:27 | 1456951 CoolBeans

Sorry 'bout that Bastiat. I'm a compliance "geek" (not what I want to be when I grow up).

Your point on these actions being a positive for class actions is most excellent. I'm still hoping for a crash and burn scenario for JPM.

Fri, 07/15/2011 - 12:38 | 1459942 Stubert

Deloitte & Touche = Toilette & Douche

JPM loves flushing their sh!t on us.

Here Is The Reason For JPM's Negligible Litigation Reserve: You

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