JP Morgan-Chase fined $13 billion!

[kentuck]

They have spent $8 billion of $28 billion set aside for legal expenses.

They sold their bad mortgages to Fannie Mae and Freddie Mac, who have taken over $187 billion in bailout aid from the government. Now who thinks they were the only one to take advantage of that little government umbrella?
=====================

http://www.bloomberg.com/news/2013-10-19/jpmorgan-said-to-have-reached-13-billion-u-s-accord.html

<snip>
The FHFA sued JPMorgan and 17 other banks over faulty mortgage bonds two years ago to recoup some of the losses taxpayers were forced to cover when the government took control of failing mortgage finance companies in 2008.

The FHFA accused JPMorgan and its affiliates of making false statements and omitting material facts in selling $33 billion in mortgage bonds to Fannie Mae and Freddie Mac from Sept. 7, 2005, through Sept. 19, 2007. Those two firms, regulated by FHFA, have taken $187.5 billion in federal aid since then.

The regulator said executives at JPMorgan, Washington Mutual and Bear Stearns Cos., which were acquired by JPMorgan in 2008, knowingly misrepresented the quality of the loans underlying the bonds, according to the lawsuit filed in federal court in Manhattan.

<snip>
The case is Federal Housing Finance Agency v. JPMorgan Chase & Co., 11-06188, U.S. District Court Southern District of New York (Manhattan).

.....more

[onethatcares]

1. am I wrong in reading

that they got fined 13 billion out of 33 billion that they made?

where can I get a hookup like that, sheeesh.

[spanone]

2. they negotiated that settlement. imagine how much they made if they were willing to pay 13b?

[kentuck]

3. Well...

They sold..."$33 billion in mortgage bonds to Fannie Mae and Freddie Mac from Sept. 7, 2005, through Sept. 19, 2007".

And that was for only two years!

[spanone]

4. a small price to pay....

[Swede Atlanta]

5. If they agreed to $13B that means...

it should have been $75BN but took a lesser hit.

Unfortunately unless the fine is leveraged on the INDIVIDUALS that committed these crimes and those individuals serve PRISON for 25 years to life, this only hurts the investors in the company. Yes, yes, some of those investors are large investors like other banks, etc. but there are also public employee pension funds and individual IRAs and 401Ks that may also be hit.

We need to find a way to hold the assholes responsible for this accountable and suck any money they got from their crimes back and then make them suffer in a maximum security prison for years. I consider crimes that deprive people of their hard-earned money, their dreams, aspirations, homes, etc. to be as invasive as violent crimes...I would exempt murder of course.