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JPMorgan Slides On "Deal" Breakdown Chatter

Tyler Durden's picture




 

JPMorgan shares have dropped modestly (though any drop is notable in the new normal) as the WSJ reports that the $13bn deal with the Department of Justuice may be at risk:

  • *JPMORGAN FALLS 0.6% AS DOW JONES SAYS DOJ DEAL AT RISK
  • *JPMORGAN, JUSTICE DEPT SAID TO DISAGREE ON FDIC REIMBURSEMENT
  • *JPMORGAN PROPOSED SETTLEMENT SAID TO FACE U.S. RESISTANCE

It appears the 'breakdown' is over JPMorgan's demands that they offset payments to the DoJ from the FDIC fund (i.e. they wanted to use FDIC to fund this penalty on the basis of som epossible indemnification from the WaMu deal). DoJ lawyers are not amused (for now)...

 

 

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Tue, 10/29/2013 - 13:40 | 4102063 HedgeAccordingly
Tue, 10/29/2013 - 13:49 | 4102076 hedgeless_horseman
hedgeless_horseman's picture

 

 

Relax, comrades.  JPM is TBTF during the course of The Thousand Year Reich of Amerika.

They will create money from thin air to pay whatever fine is imposed, as long as they can maintain the franchise to create money from thin air.

Tue, 10/29/2013 - 13:50 | 4102103 AllThatGlitters
AllThatGlitters's picture

Correct me if I'm wrong, but what JPM is proposing essentially is that they don't have to pay a fine, but rather, for all intents and purposes, the FDIC has to pay the fine for them?  Just wow.

Tue, 10/29/2013 - 13:53 | 4102120 JmanSilver.Gold
JmanSilver.Gold's picture

yup,   the stones of jimmy demon know no bounds.  The same FrauDIC that gifted him WAMU back in 2008 for relatively nothing.

Jimmy just keeps his cock in.

Tue, 10/29/2013 - 14:05 | 4102171 kaiserhoff
kaiserhoff's picture

This could be important.  In a sane world JP Morgan would have been broken up years ago.  If that happens, Goldman is too big by an order of magnitude and will have to follow.  With those monsters out of the picture the whole too big to fail meme would swiftly die, at least in the States. 

The future is not predictable in any useful way, but like the early Christians, we live in hope.

Tue, 10/29/2013 - 14:20 | 4102237 Stuart
Stuart's picture

The DOJ should kill the deal, and go back after them with the decimal point move another notch to the right this time, including personal and criminal charges against the entire Executive team & BOD that was sitting during the time. 

Tue, 10/29/2013 - 14:23 | 4102256 NotApplicable
NotApplicable's picture

In other news... FDIC DIF no longer insolvent?

*quickly runs out to internets*


In other, other news... I can no longer find the DIF balance on the FDIC's website????

http://www.fdic.gov/deposit/insurance/

Instead all I see is a bunch of "blah, blah, blah" about a 2% reserve ratio, along with new formulas for calculating it.

Tue, 10/29/2013 - 14:25 | 4102266 negative rates
negative rates's picture

Risk on sailor.

Tue, 10/29/2013 - 14:28 | 4102277 NotApplicable
NotApplicable's picture

Okay, I found the DIF balance. Instead of being published on the website as it used to be, it's now in a semi-annual pdf memorandum to the board. Long story short, they've got $39B in the fund now, which is a whopping .63% reserve ratio, according to the books that pass for accounting these days.

http://www.fdic.gov/news/board/2013/2013-10-08_notice_dis_b_mem.pdf

Tue, 10/29/2013 - 15:18 | 4102462 kaiserhoff
kaiserhoff's picture

How brave of you to inquire, kind sir.

Thanks for the the diligence.

Tue, 10/29/2013 - 14:13 | 4102206 Urban Redneck
Urban Redneck's picture

JPM was never going to pay the whole fine anyway, since the taxpayers would effectively be picking up the tax-deductible portion...

Tue, 10/29/2013 - 14:18 | 4102228 kaiserhoff
kaiserhoff's picture

Fines, as a general rule, are not tax deductible.

   On the other hand, there are probably special rules for those doing god's work.

Tue, 10/29/2013 - 14:38 | 4102318 Urban Redneck
Urban Redneck's picture

That was my general impression too, but I also recalled reading somewhere that someone was working on finding the appropriate loophole. Google wasn't my friend in finding the original article that caught my attention but Reuters regurgitates the high level summary-
http://www.reuters.com/article/2013/10/22/us-jpmorgan-penalties-idUSBRE9...

Tue, 10/29/2013 - 17:17 | 4102824 putaipan
putaipan's picture

if my ears were correct- naked capitalism on dem.now just said it was in this case...

Tue, 10/29/2013 - 13:50 | 4102107 The Thunder Child
The Thunder Child's picture

Too many people forget that JP Morgan owns a controlling share in the Federal Reserve along with Goldman Sachs.

+1 for the reminder

Tue, 10/29/2013 - 13:54 | 4102128 vxpatel
vxpatel's picture

Always worth repeating! +5

Tue, 10/29/2013 - 13:57 | 4102143 Headbanger
Headbanger's picture

That's exactly right. The Federal Reserve. Which is basically owned by the big banks and not a part of the Federal Government. Which means the banks can do as they please to save their asses now that the protection game is over.

Tue, 10/29/2013 - 19:36 | 4103149 lotsoffun
lotsoffun's picture

obama ain't going nowhere.  maybe a third term.  nothing is over.  it doesn't matter what he does, as long as he keeps giving people free stuff.  boogie-down wonderland loves him.  and white trash doesn't want to give up any free stuff, they know the republicans will do that.  so dem's go up and up.

spying on merkel is nothing.  none of them even know who she is, or where europe is on a map.  they still remember something about hitler being german, how we saved the world and the germans must still be bad, so f-them.

 

Tue, 10/29/2013 - 13:59 | 4102131 Headbanger
Headbanger's picture

Bullshit!  This is exactly what I suspected would happen now that King Rat Obozo is politically dead and the rats start turning on each other.

JPM is going to save its own ass and start dumping assets cause this deal breakdown means big banks are not protected and won't be bailed out again!

Other TBTF banks will soon follow.  

The crash is upon us!

Tue, 10/29/2013 - 19:54 | 4103195 Not Goldman Sachs
Not Goldman Sachs's picture

HB, just wondering why this theatrical farce of fine/no pay will cause asset unloading? The FED will still have their back if bailing is necessary to keep the charade going.

Tue, 10/29/2013 - 13:42 | 4102074 vote_libertaria...
vote_libertarian_party's picture

Wow, crashed to where it was....uhhhh....3 hours ago???

Tue, 10/29/2013 - 13:43 | 4102077 John McCloy
John McCloy's picture

Anyone still believe these guys have capital? Lol

Tue, 10/29/2013 - 13:49 | 4102100 Quinvarius
Quinvarius's picture

They have all that EBT money they are supposed to be holding for the government to pay out for food.  Sucks when the government realizes any money they deposit at JPM becomes JPM's money by law and they can't do crap about it. 

Tue, 10/29/2013 - 13:50 | 4102102 ziggy59
ziggy59's picture

Its called OPM...other peoples money..The taxpayer is bottomless, thanks to the FED

Tue, 10/29/2013 - 14:30 | 4102287 NotApplicable
NotApplicable's picture

As long as Jamie's friends with a nuclear power, he's got all of the capital he needs.

Tue, 10/29/2013 - 13:48 | 4102094 Devotional
Devotional's picture

November 17 is just a start.

Tue, 10/29/2013 - 13:51 | 4102110 JmanSilver.Gold
JmanSilver.Gold's picture

good ole  JPIG still fucking the taxpayers via the FrauDIC.  Where is that miserable fucking cunt bair that gifted WAMU to Jimmy for (supposedly) $1.9 billion?

WAMU with $188 billion in deposits and a sub-bank that had $20 billion in cash,,,,yeah that was a fair deal.   And listen to barfett and these other lying shills talk about how JPIG 'took on' WAMU.  JPIG has burned through that honeypot,,,,right out the front door of the 'fortress'.   What a joke.

Yeah riiiight.   Ever hear of PROJECT WEST there, warren ?

Tue, 10/29/2013 - 14:24 | 4102261 disabledvet
disabledvet's picture

whatever happened to Wachovia? (or is it "Whatcovia? now...

Tue, 10/29/2013 - 14:53 | 4102375 ghostfaceinvestah
ghostfaceinvestah's picture

If anyone is to blame for this fiasco it is Sheila Bair.  WaMu was about to be SOLD (in a market transaction, albiet for pennies a share) when Bair informed all the potential bidders she was going to hold an auction of WaMu's assets.

WaMu even hired a new CEO specifically to sell the company.  The guy had been on the job a few weeks.

Sheila wouldn't give him the chance to sell it.  So she took over a large, complex bank (that at one time had a broker/dealer) that she totally did not understand, and crafted a purchase agreement with JPIG, which btw was altered AFTER it had been signed.

If she had let the market transaction finished (maybe would have taken another week to be finalized) none of this would be an issue right now.

Tue, 10/29/2013 - 13:53 | 4102118 CharliePrince
CharliePrince's picture

does  DOJ  stand 

for Dept. of  Joke

Tue, 10/29/2013 - 13:56 | 4102119 ebworthen
ebworthen's picture

Funds from the FDIC to pay the penalty?

Oh sure, why not from the Detroit pensioner fund too, and the Widow's and Orphan's fund, and some gold teeth of retirees, some baby sacrifices, and eye of newt?

Tue, 10/29/2013 - 13:56 | 4102141 AllThatGlitters
AllThatGlitters's picture

Next time I get a speeding ticket, I'm going to court. I'll suggest to the judge when I lose my case that my fine be extracted from the local soup kitchen, to whom I had written a check the month prior.

Tue, 10/29/2013 - 13:58 | 4102145 Trimmed Hedge
Trimmed Hedge's picture

Will somebody please just kill Dimon already?

Tue, 10/29/2013 - 20:56 | 4103346 tradewithdave
tradewithdave's picture

Is it really necessary to say that?  People die at Wimbeldon all the time of natural causes.  It's a big event. A lot of people are there including a member of the JPM Board of Directors and Audit Committee that died there suddenly.  A lot of people die in hot tubs too.  Anywhere you find a lot of people, people are going to die.  Killing people is entirely unnecessary.  People simply die on their own.  Everyone dies eventually.  Take Marc Rich for example.  He died and the next day the civil complaint was signed against Jon Corzine.  Complete coincidence no doubt and nothing to do with Glencore.  Live and let live. 

Tue, 10/29/2013 - 13:59 | 4102148 NOTaREALmerican
NOTaREALmerican's picture

Haven't the job creators suffered enough !   

Tue, 10/29/2013 - 14:00 | 4102149 traditionalfunds
traditionalfunds's picture

Even if FDIC was to lose the case to JPM they would simply have to raise the rates banks pay to them for FDIC insurance coverage. Short-term win at best. Still unlikely that JPM would prevail in court.

Tue, 10/29/2013 - 14:10 | 4102196 NoTTD
NoTTD's picture

You mean there is some reason they shouldn't be allowed to offset their criminal fines with tax money?   That's horse and buggy thinking! 

Tue, 10/29/2013 - 14:17 | 4102227 buzzsaw99
buzzsaw99's picture

Senator? You can have my answer now, if you like. My final offer is this: nothing. Not even the fee for the gaming license, which I would appreciate if you would put up personally. [James "Corleone" Dimon]

Tue, 10/29/2013 - 14:22 | 4102252 Colonel Klink
Colonel Klink's picture

When will people wake up and stop doing any business with this bloodsucking company?

Tue, 10/29/2013 - 14:28 | 4102276 disabledvet
disabledvet's picture

there's always someone to get singled out in this world. next up..."the media campaign." glad to see ZH is on board...

Tue, 10/29/2013 - 15:21 | 4102477 BanksterSlayer
BanksterSlayer's picture

For your amusement, or, whatever, David "Financial Tyranny" Wilcock posted yesterday that the sale of JPM's One Chase Plaza building to the Chinese is an indication that China is foreclosing on, or initiating a takeover of, JPMorgan.

 

"I have been able to independently confirm, from insiders, what Ben said last week about JP Morgan having been sold to the Chinese. Very significant events are going on right now, and it does seem that we are finally approaching the moment we’ve all been waiting for. The handwriting is on the wall. "

 

"The Cabal are planning on creating a mega-event of some sort within the month of November, earlier rather than later. They expect that “83 percent of Americans will be affected” by this, dramatically, and that wherever you are when it happens, that’s where you will continue to be — for a long time to come. "

 

"I take all of these warnings with a heaping tablespoon of salt, but then again, I have been hearing the same thing from three different independent sources now. My insider said it may be an announcement that the US is completely bankrupt." 

 

From:

http://theflowofperceptions.blogspot.com/2013/10/ben-fulford-this-hallow...

 

Now waiting now for the inevitable intersection of mainstream news with the Alternative Media.

Tue, 10/29/2013 - 15:39 | 4102547 Conax
Conax's picture

Bankrupted or blacked out.  I think I would prefer the former.

Tue, 10/29/2013 - 16:33 | 4102723 Sufiy
Sufiy's picture

Have Jon Stewart spoiled the party?


Jon Stewart And Matt Taibbi: Banksters, Presstitutes And Why Nobody Should Shed a Tear for JP Morgan Chase


 Matt Taibbi continues his brilliant work as one of the last real investigative journalists left at his best. Jon Stewart is on par translating the situation for those who has difficulties with concentration and reading.    We will ask our rhetorical question again: after LIBOR fraud, FOREX manipulations, Mortgage scam and Pension looting - Is The Gold Manipulation To Be Admitted Next? http://sufiy.blogspot.co.uk/2013/10/jon-stewart-and-matt-taibbi-banksters.html#

Tue, 10/29/2013 - 17:05 | 4102799 NoWayJose
NoWayJose's picture

Nothing like using taxpayer money to pay the penalty for abusing taxpayer money! I would rather see a $1 penalty that sent the top 5 execs to jail for 10 years. You see how they want to twist where the penalty money comes from. If they don't get taxpayer money outright, you know the IRS is going to let them write this off and avoid paying any income tax for years to come.

Tue, 10/29/2013 - 19:39 | 4103159 lotsoffun
lotsoffun's picture

FDIC was something like 50 billion in the hole just after 2008.  it doesn't matter.  you will get your 250,000 dollar guarantee covered.  they will print as much as needed and hand it to you.

i will defend ms. bair.  she got out because she saw how ugly these people all were and where this was all headed.

Tue, 10/29/2013 - 20:03 | 4103217 Not Goldman Sachs
Not Goldman Sachs's picture

Why is it when companies perform criminally the company pays a fine and the individuals are not punished? The company did not commit the crime, the individuals did.

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