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JPMorgan To Pay Record $13 Billion Mortgage Settlement But Criminal Case Remains
Under the guidance of Jamie Dimon, adjudged by the mainstream media to be the greatest banker the world has ever known (hyperbole accepted), a late night Friday phone call (we assume not a drunk-dial) between Attorney General Eric Holder and JPMorgan's general counsel, confirms, according to the WSJ, that JPMorgan will settle their residential mortgage bond suits with the DoJ for $13 Billion - the biggest settelement ever for a single company. Bloomberg reports that an additional $2 billion was added during the negotiations last night. Who knows: perhaps Dimon feels the same about Holder as the rest of the population and made it quite clear, at a cost of another $2 billion.
The final wording of the deal is to be finalized but as part of the deal the DoJ expects JPM to cooperate with the continuing criminal probe of the bank's RMBS issuance - which remain unresolved. The settlement is 'unsurprisingly' in line with JPM's expected litigation expenses for Q2/Q3 13 but it would appear they expect worse to come still as the total litigation reserve was recently increased.
- *JPMORGAN SAID TO HAVE REACHED $13 BLN MORTGAGE ACCORD WITH U.S.
- *JPMORGAN SAID TO AGREE TO ADDITIONAL $2 BLN OVER EARLIER AMOUNT
- *JPMORGAN SETTLEMENT SAID TO COVER ALL CIVIL MORTGAGE MATTERS
- *JPMORGAN ACCORD SAID TO EXCLUDE ANY CRIMINAL RELEASE
The settlement appears to right in the middle of the range...
- The initial "ask" was $20 billion - as floated by the FHA.
- JPMorgan countered with an "expectation" of around $3 billion
- and the final "settlement" comes in at $13 billion
Perhaps unsurprisingly in line (as seen below) with expectations for losses in Q2 and Q3 2013 (of $5.7 billion and $6.8 billion respectively)
JPMorgan has reached a tentative $13 billion deal with the Justice Department to settle a number of outstanding investigations of its residential mortgage-backed securities business, according to a person familiar with the decision.
The general terms of the deal were struck Friday night in a phone conversation between Attorney General Eric Holder, his deputy Tony West, and the bank's general counsel, Stephen Cutler, the person said.
...
The deal doesn't resolve a continuing criminal probe of the bank's conduct, which is being handled by federal prosecutors in Sacramento, Calif., the person said.
...
The deal does include a roughly $4 billion agreement with the Federal Housing Finance Agency to settle allegations that J.P. Morgan misled Fannie Mae and Freddie Mac about the quality of loans it sold them
...
As part of the deal, the Justice Department expects J.P. Morgan to cooperate with the continuing criminal probe of the bank's issuance of mortgage-backed securities between 2005 and 2007, the person said.
...
The settlement also doesn't cover other criminal investigations of conduct unrelated to mortgage-backed securities, the person said.
So they have $23bn in total reserves outstanding... and they estimate $12.5bn in losses over reserves as of Q3 (see above).
Which makes a total of $35 billion potential legal charges.
So summing it all up...
$13 billion down... $22 billion still to go - as civil litigation and the full criminal case continues
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Here's some more dirt on our big players: :))
http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html
yah but did Jamie have to give back his cufflinks?
$4 per share...big deal
JPM has about $20 bazillion a year in net income. They can certainly handle the $13 billion, besides, they can get all the free money they want from the fed, and then just hand it over to the d.o.j. It's all in the family, if you know what I mean. Criminal charges? pffftt. This mortgage fraud stuff is like the least of the shit they do.
The JPM fine / legal circus is a limited hang-out.
The real crime is that JPM, Goldman, HSBC, Deutsch Bank, other bullion banks, the BIS and central banks leased gold and manipulated the paper gold market to contain gold and silver prices for more than 15 years to hide monetary inflation.
Greenspan, a former director of JPM was part of the rig.
The rigging of precious metals as well as the fudging of CPI numbers hid the monetary bubble that has blown a worldwide debt and speculative bubble as a consequence.
This monetary bubble is now collapsing. And this is the story that will never be addressed because it involves governments and central banks as well.
Don't forget Peter Munk and Barricks role in the price suppression efforts. They were a central player in that criminal enterprise for many years.
Not to mention the captured and failed regulators, the SEC and CFTC.
For many years, JPM had their Toronto office one floor below Barrick Gold in Toronto.
That must have saved a lot of courier and travel time.
Oh, THANK YOU, Department of Justice, ye angelic champions of home owners throughout the land. Your $13 billion fine will trickle down to everyone who was illegaly foreclosed upon in the form of a VERY GENEROUS $2,000 check, for them to spend as they like. Tax free, on Uncle Sam.
We throw ourselves at your feet in utmost humble appreciation for your valiant deed. Forever we shall speak your name, and name our first-borns of thee.
I am Chumbawamba.
one of your better ones
I'll bet you a beer some locals do more time on their DUI than JP does for this
Gold is Equity in the SDR IPO of the next Global Financial System
http://twoshortplanksunplugged.blogspot.com.au/2013/10/gold-is-equity-in-sdr-ipo.html
But the the DoJ just gives it back to the Fed, unless there's a profit, in which case they give that back to the Treasury, who uses it to pay the interest on...oh, good god, this is like bathing in a sewage outflow pipe.
it truly is a circle jerk isn't it. Let's see, this shit is worthless and we need you to help us con the world that it's not. Now don't be too greedy but since you fucked up and since we fucked up, we'll give you an unlimited amount of this shit for free and you will do things to fuck up the natural markets. Sounds good.
Nah, they'll just naked short another bazillion ounces of silver. Or they can transfer a few accounts to London a la Corzine.Or maybe they can just pay in T bills.
$13 billion is mere chicken feed to JPM!
I'm sure the good Senator McClown from Kentucky will simpy earmark 13 billion back to them when they "fix" the January "financial crisis".
correction, wee:
"$13 billion is mere chicken feed to JPM...shareholders."
And notice that all of the big players with FDIC insured deposit taking subsidiaries stuff all of those derivatives into said subsidiaries. That's talking about a big stick to beat congress, the president, regulators and the people over the head with should any of them not wish to play ball.
Fuck you bankers.
No doubt Maria will be gushing at this "big win" for JPM. "What a great bank, putting aside the criminal activity..."
dNC will skim 10% for themselves???you gotta love America
"we assume not a drunk-dial"
Not a drunk-dial, but...it still qualifies as a booty call
It's a question though of who got fucked, and who did the fucking..
When were they dead, and when did you know it?
Answer the question, sir.
Yeah Legal Issue's aside don't forget they are hedged.
Who cares, they are paying with someone elses money...americans (and the world).
Demonocracy is awesome, simple and concise.
When Jamie and Blythe are in a cell with bubba and the people...uh hem...have been repaid, not by their own funds...it would be a small step in the right direction.
RIPS
Exactly. A monetary fine for Chase is a fucking insult.
Cost of doing business? No. We can expect they will get all that money back from some other wing of *their* government. 13 billions is a lot of optics tho.
Does this mean we are in for another week of why is the government picking on Dimon and JP Morgan stories? Can't wait!
Organized crime bosses arguing over who gets what % of the shakedown take.
The government has the military, but J.P. Morgan Chase is aggressively hiring Veterans.
Ultimately Capo Chase is TBTF so .gov will have to go along with not taking too high a % of the cut from robbing citizens. The banks are the government, .gov is just the enforcer.
"...The banks are the government, .gov is just the enforcer."
I wish others would grasp this point. The so-called Pax American has been nothing but a bankster created interlude until they change another host.
Well that keep the US under the debt ceiling for about....1 day.
Oh wait, there isn't a ceiling
bullish for the S&P.
criminal investigation since 2005. what a joke. they hope we'll all die before anyone is brought to trial. $13B is chump chnage. they still own the usa gubbermint via the fed and that includes holder and the doj. This is a farce, they should be liquidated and incarcerated down to the last man woman and child.
Buzz, I'm really pissed off. +1
They always arrange to ride out the statute of limitations.
Italy, Rome protest agains austerity http://uk.reuters.com/article/2013/10/19/uk-italy-demonstration-idUKBRE9...
From the NYT:
BREAKING NEWS Saturday, October 19, 2013 3:22 PM EDTJPMorgan Chase and Justice Dept. Said to Be Discussing a Record $13 Billion Settlement
JPMorgan Chase and the Justice Department are moving closer to a $13 billion settlement over the bank’s mortgage practices, people briefed on the talks said Saturday, a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes. To resolve an array of federal and state investigations into the bank’s sale of troubled mortgage securities to investors in the lead up to the financial crisis, the bank would be expected to pay about $9 billion in fines, according to a person briefed on the negotiations. JPMorgan, the nation’s largest bank, will also likely provide about $4 billion in relief for struggling homeowners, another person briefed on the talks said.The penalties eclipse what the bank previously offered to pay. Until now, JPMorgan was offering about $11 billion. And it had been refusing to increase its offer until the Justice Department dropped a parallel criminal investigation into the bank’s sale of troubled mortgage securities to investors."
So the shareholders get to pick up the tab, the bankers do not go to jail, and they get to keep all the bonuses they were paid during this criminal activity. Sounds about right.
....just hoping the shareholders launch a personal class action against all of the directors and managers....I'd bet that their D & O insurance would not cover all of it, if any, since it is a criminal act.
Fuck JPM shareholders! It's the price they pay for supporting evil.
No doubt most pension funds (public and private) hold JPM shares. There is nothing most people can do about this. The solution is not to kill the company and hurt the innocent, but to throw any JPM employee involved in the penitentiary and fine them into destitution.
Amen to that! Welcome Jamie to personal liability paradise.
Crane the POS.
Jamie Dimon can do no wrong. He will walk on anything and everything. Well, everything except for one, and only one real sin: overexposure. If Jamie is seen as being "too high profile," he will "resign" and his replacement will come from Goldman. The you won't hear about JPM for a long time.
Just like AIG: bailout CEO was just too high profile. So they replaced him with Benmosche.
Friendly tip to the little Greek meshug: stay indoors and avoid view windows.
Should be 13 trillion.
one...no, two platinum coins! That oughta cover it.
One thing's for sure: During the next financial apocalypse, and there will be one soon, mutual destruction is assured as no solvent entity will ever take on the debt of another making the dominoes fall even faster. Bring it on!
"If [Holder] had all the judges, and the politicians in New York, then he must share them, or let us others use them. He must let us draw the water from the well. Certainly he can present a bill for such services. After all -- we are not Communists."
-Emilio Barzini
Fuck them and the other retail branches of the Fed.
So how much of that miney is each homeowner that JPMorgan foreclosed and stole their houses getting ???? Must be a lot !
/Sarc.
ATM fee increase coming in 3.2.1......
Jail and execute them. Then we're talking.
Can I sell the body parts?
Can anyone tell me what proportion of the profits made by JP Morgan on these products do these fines constitute?
If it isn't 100% then the DOJ is just a clown act.
What the hell did dimon say to POTUS?
How many people did Dimon scapegoat in his career? Maybe there is some karma in this world. Will Dimon talk and let some skeletons loose on DC?
Only the NSA knows for sure.
Come on General Alexander, cough it up. Where’s the leak to U-Tube already?
And don’t worry about JPM they’ll be fine. They’re probably making a fortune already on binary call options on this settlement which Blythe bought in the OTC market with a strike of $7 billion.
Paging; Maria Barferomo? AKA, Jamie Dimons cock holster.
This is likely a big week for the metals. Both silver and gold had big up days on Thursday and nice quiet days on Friday, lurking under their 50-days. They both ran stops earlier in the week with strong reversals in typical bottoming stick fashion. Neither one has violated their six-month inverse head-and-shoulder patterns and they look ready to launch. They might trade sideways between their 50 and 20-day MA's in accumlation mode for a few days, but if the bulls are ready to make a big move over the coming months it will happen very soon and there will be nothing ambiguous about it. I expect a very strong break through of their 50-days that close at top of the stick. While there are never any guarantees in trading, I will take this trade every single time. If there's ANY lingering or hesitation after breaking out, there's risk of a fake-out, so I'll put stops immediately at breakeven if I can. It will be very obvious. Technically, the inverse head and shoulders pattern isn't activated until there's a breakout thru the 1400 trend line, but this is a great setup. I hope it works because the metals are much easier to trade when they are trending up. If this fails, I doubt I'll trade any move down as it doesn't feel right to me at all, and there isn't really a technical setup to play.
Nice comment - now all we need is a market.... ;)
Leaving me one question: how much did they make before this (admittedly huge) wristslap?
Is Jamie still making more money than me? Is this why? LOL
Off with their heads!
Bankers are the biggest leach on society with the credit card scam. Not only do they borrow money from our government for almost nothing, they are charging us way over 10% interest PLUS a fee from the retailer! So they are bloodsucking the entire nation on an unprecedented way. Should this scheme go belly-up, guess who will bail out these fraudsters? These are BILLIONS being syphoned off, only to be stashed in offshore accounts.
JFC! Lets call it a cool $30bb This shit is going Walmart (SNAP) so fast !
Bernanke print that up for them before closing up shop. Obama see to it.
sick fuckers! including GS!
why does 13 billion seem so small, we have lost all sense of proportion and it is JPMs fault.
These guys have devalued money faster than lead flew in WW2.
Since JP Morgan (and the other TBTF banks) own the government, this is merely an inter-company transfer. All for show. Eventually, the money will all flow back.
I wonder if there is any link between this and Chase's recent change on international wire transfers and restrictions on cash transactions?
Everyone is equal under the law...but some are more equal than others.
Will a true patriot at NSA please leak the audio of the phone call between Holder and Cutler.
Wake me when Dimon's in an orange jumpsuit
Unfortunately that will never happen.
A-judged by the mainstream media
http://dilbert.com/2013-10-19/
On the plus side, everyone gets to keep their bonuses.
so, let's assume that the msm is right and that dimon is the best of the lot. what do you think gsboacitietc should pundle up? my guess is about, well, a lot more each....
:)
Anybody know with all these fines and future fines if this bank is stable and money should be withdrawn from it.
It's fun when your Sheepleshareholders pay through the nose for your criminality.
Call me when someone actually goes to jail...
ROFL
Dimon should be raped...
All goes back to Jekyll Island and how six individuals, who represented one quarter of the world’s total wealth, purportedly went duck shooting. The six included Chairman of the National Monetary Commission and John D Rockefeller’s father-in-law, the head of JP Morgan’s Bankers Trust Company, the President of the National City Bank of New York representing William Rockefeller and Paul Warburg representing the Rothschilds and Warburgs in Europe. Not a shot was fired. They were there to set up a banking cartel - the Federal Reserve System – a legal private monopoly of the money supply operated for the benefit of the few under the guise of protecting and promoting the public interest. What these guys wanted was to intervene in the free market and tip the balance of interest rates downwards, to favour debt over thrift and, to accomplish this, the money supply had to be disconnected from gold and made more plentiful. Lend, lend, lend and lend big. Get those loans out there and keep them out there…roll them over, re-schedule them, whatever. Interest only loans were best, you didn’t want the principal repaid and then have to find another home for it. If rolling over and rescheduling didn’t work, a Government bail-out might be required. That meant the delinquent loans had to be big, really big, otherwise it wouldn’t be in the public interest to do so. So how big is +-$30bn...sounds like small potatoes to me considering there's over one quadrillion dollars of questionable derivatives ticking away out there.
http://www.zerohedge.com/article/robert-welch-predicted-keynesian-armage...
1958
According to Welch, "both the U.S. and Soviet governments are controlled
by the same furtive conspiratorial cabal of internationalists, greedy
bankers, and corrupt politicians. If left unexposed, the traitors inside
the U.S. government would betray the country's sovereignty to the
United Nations for a collectivist New World Order,
managed by a 'one-world socialist government.'"
So interesting it has taken so long to get to this point where they actually are attempting to do something - although its only for the MSM trumpeting.
My guess it it was pushed back and back and back until the Fed could provide enough free profit for the firms to just pay it back to the govt.
Nothing they chargeed them with now was any different 1,2,3, or even 4 years ago - it was all known. What was not in place was the mechanism to "pay" for it. So the Fed, the Justice Dept and the Pres all got together with a master plan to re-allocate capital to those who did wrong so they would have the capacity to pay. Fed feeds free money year 1, year 2, year 3, year 4 etc. Firm makes record profits thanks to ol Bernie and socks away the already pre-agreed upon amount.
Once enough time goes by the charges fly. Only its a joke. If they were serious they would revoke their banking charter. Throw anyone and everyone who had a hand in perpetraing the crimes into jail. Put them out of biz. Yes- a ton of people would be out of a job but I can assure it would be the last time any firm did that again.
Won't the flood gates now open for all that got screwed over by the Morgue? I could imagine there are a few litiguous souls left in the US who might feel emboldened to launch a class-action.
Or perhaps everyone'll just shrug and say "Bygones!"
Single instance limited culpability admission.
No floodgates.
What's that you say? "No shit sherlock?"
http://tradewithdave.com/?p=18797
http://www.youtube.com/watch?v=RJwJENSGnhE
Interview with Ms. Karen Hudes, Attorney, Whistle Blower for The World Bank.
http://kahudes.net/
(one more). Please Support Karen Hudes, the ex World Bank attorney Whistle Blower trying to save our asses.
Bet the fuckers still pay themselves a a multi million $ bonus this year.
I wonder who Dimon will throw to the wolves....lets hope it's Bitch Masters
Keep the fines coming so one day I can say "That's why my credit union is richer than your bank."
OK, where will the $13 billion go? To the treasury or the people/institutions that were actually damaged? I think we know the answer.
When the Gold market manipulation will exposed?
Max Keiser: Alasdair Macleod Investigates The $640 Million Sell Order Of Gold.
We continue to follow The Crime Of The Century - Gold market manipulations. Today we have Max Keiser who investigates with Alasdair Macleod the 640 million Sell order of Gold which disrupted the trading session on Friday 11th and was supposed to Kill the rest of the confidence in Gold safe heaven status. Chinese are not buying into it any more and moving fast now with their state level long term plan of diversification its Reserves out of US Dollar denominated assets.http://sufiy.blogspot.co.uk/2013/10/max-keiser-alasdair-macleod.html#
When the Gold market manipulation will exposed?
Max Keiser: Alasdair Macleod Investigates The $640 Million Sell Order Of Gold.
We continue to follow The Crime Of The Century - Gold market manipulations. Today we have Max Keiser who investigates with Alasdair Macleod the 640 million Sell order of Gold which disrupted the trading session on Friday 11th and was supposed to Kill the rest of the confidence in Gold safe heaven status. Chinese are not buying into it any more and moving fast now with their state level long term plan of diversification its Reserves out of US Dollar denominated assets.http://sufiy.blogspot.co.uk/2013/10/max-keiser-alasdair-macleod.html#
Where do these fines ultimately end up...back in the banks' coffers?