Public interest group sues Justice Dept. over JPMorgan settlement
Source: LA Times
WASHINGTON -- A public interest group on Monday sued the Justice Department over last years record $13-billion settlement with JPMorgan Chase & Co., arguing the deal to resolve investigations into faulty mortgage investments was unconstitutional because courts did not review it.
Better Markets Inc., which has been critical of Wall Street and regulators in the aftermath of the financial crisis, filed the suit in U.S. District Court in Washington, D.C.
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"The bailouts and suffering of the American people in 2008 and 2009 were bad enough," Dennis Kelleher, president of Better Markets, told reporters at a news conference.
"Its too much to ask taxpayers and the American people to put up with a secret backroom deal that might well be another sweetheart deal for yet another big Wall Street bank," he said.
Read more: http://www.latimes.com/business/money/la-fi-mo-jpmorgan-chase-justice-settlement-suit-better-markets-20140210,0,7437915.story
JDPriestly
(57,936 posts)Interesting idea, but will it work? Will they have the standing needed? Does anyone know? Has this been tried before? Did I miss something?
bemildred
(90,061 posts)However I do think it's a very good question. Why exactly must the public not know what is being planned for Them?
Sgent
(5,857 posts)to see how they could get standing, but coming up blank.
The government settles thousands (10,000's) potential suits every year -- from IRS audits to Medicare over payments to dealing with Medicare renumeration in the case of third party liability claim (Medicare gets a negotiated part of your lawsuit proceeds if you win a lawsuit which has medical costs attached for medicare patients), to payroll disputes, etc.
In many of those cases the US attaches civil penalties (IRS penalties, etc.) for non-compliance.
Its hard to see how a unrelated third party could have standing to object that non of these had been filed as a lawsuit (and thus subject to federal judge approval).
All this settlement does is deal with the civil liability of JP Morgan to the federal government -- it doesn't effect criminal liability or private claims.
Enthusiast
(50,983 posts)End this bullshit now!