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Posts Tagged ‘Federal Housing Finance Agency’

According to Reuters, “JP Morgan Chase & Co CEO Jamie Dimon has pleaded with and complained to the U.S. Justice Department but cannot convince the government to end its criminal probe of his bank because prosecutors are not yet certain of their findings, people familiar with the matter said.” Perhaps that’s because Dimond’s neck deep up in crimes. A life time in prison isn’t exactly what anybody would want.

While the criminal investigations are still on going, Dimon has agreed to “the largest single-institution settlement arising from the financial crisis. Dimon’s JP Morgan Chase has agreed to pay $13 billion dollars. This is to resolve multiple investigations involving its mortgaged backed securities and other derivatives. The civil settlement appears to have no bearing on other ongoing criminal investigations of the bank.

While there has been no official release from the Department of Justice (DOJ) which negotiated the settlements or from JP Morgan itself, it is widely reported that the settlement includes $9 billion in fines and $4 billion in relief for consumers. Reuters is reporting that 80 percent of the settlement involves investigations of the mortgage business of Washington Mutual and Bear Stearns, which were both acquired by JPM. Others are reporting that the $4 billion in consumer relief arises out of claims from the Federal Housing Finance Agency that the bank sold improperly vetted mortgages to Freddie Mac and Fannie Mae, loans which eventually defaulted.

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