Latest Breaking News

Omaha Steve

(99,708 posts) Sat Oct 26, 2013, 05:35 AM Oct 2013

JPMorgan's $5B settlement doesn't end its troubles

Source: AP-Excite

By MARCY GORDON and KEN SWEET

WASHINGTON (AP) - The $5.1 billion that JPMorgan Chase has agreed to pay hardly ends its legal troubles over mortgage securities it sold.

It's merely a down payment.

JPMorgan still faces heavy financial burdens. The bank has set aside $23 billion to cover legal costs - and it may need it all.

In a statement Friday night, JPMorgan called its latest settlement an "important step" toward resolving allegations over mortgage-backed securities it sold. The $5.1 billion would resolve federal claims that it misled Fannie Mae and Freddie Mac about risky home loans and securities they bought before the housing market collapsed.

FULL story at link.

Read more: http://apnews.excite.com/article/20131026/DA9LK1JG0.html

In this May, 12, 2012 file photo, Peter Castelli, a vice president with JP Morgan, works in his firm's booth on the floor of the New York Stock Exchange. JPMorgan said Friday, Oct. 25, 2013, that it has agreed to pay $5.1 billion to resolve claims that it misled Fannie Mae and Freddie Mac about risky mortgage securities it sold them before the housing market collapsed. (AP Photo/Richard Drew, File)

7 replies

= new reply since forum marked as read

Highlight:

JPMorgan's $5B settlement doesn't end its troubles (Original Post) Omaha Steve Oct 2013 OP

k&r Hugin Oct 2013 #1

The settlement was an obscene joke. woo me with science Oct 2013 #2

Luckily for JPM though, their settlement IS Tax Deductible. NorthCarolina Oct 2013 #3

Thanks for pointing this out. This loophole should be closed, so that they have to feel actual pain silvershadow Oct 2013 #4

It would be a lot moe painful if they had much of a tax burden to begin with. Jackpine Radical Oct 2013 #5

I can't disagree with you. nt silvershadow Oct 2013 #6

Confused again... dotymed Oct 2013 #7

Hugin

(33,198 posts)

1. k&r

Reply to Omaha Steve (Original post)

Sat Oct 26, 2013, 07:03 AM

Oct 2013

woo me with science

(32,139 posts)

2. The settlement was an obscene joke.

Reply to Omaha Steve (Original post)

Sat Oct 26, 2013, 08:11 AM

Oct 2013

And there are no signs that there will be adequate punishment for what they did.

NorthCarolina

(11,197 posts)

3. Luckily for JPM though, their settlement IS Tax Deductible.

Reply to woo me with science (Reply #2)

Sat Oct 26, 2013, 10:38 AM

Oct 2013

So their actual cash outlay will be much less than the 'settlement' amount.

silvershadow

(10,336 posts)

4. Thanks for pointing this out. This loophole should be closed, so that they have to feel actual pain

Reply to NorthCarolina (Reply #3)

Sat Oct 26, 2013, 11:47 AM

Oct 2013

from their actions.

Jackpine Radical

(45,274 posts)

5. It would be a lot moe painful if they had much of a tax burden to begin with.

Reply to silvershadow (Reply #4)

Sat Oct 26, 2013, 12:27 PM

Oct 2013

I think any fine levied on them ought to be fatal to the corporation. Then take the fine money to pay off the small depositors and institutional investors (401k's & the like).

silvershadow

(10,336 posts)

6. I can't disagree with you. nt

Reply to Jackpine Radical (Reply #5)

Sat Oct 26, 2013, 12:37 PM

Oct 2013

dotymed

(5,610 posts)

7. Confused again...

Reply to Omaha Steve (Original post)

Sat Oct 26, 2013, 02:16 PM

Oct 2013

I thought they had reached a "negotiated settlement" for 13 billion, the other day.

Is this a different case against Jamie?

Reply to this discussion