JPMorgan Chase reaches record $13 billion settlement with Justice Department - New York News

JPMorgan Chase reaches record $13 billion settlement with Justice Department

Updated:

By: Devon Merling, Deseret News

JPMorgan Chase and the Department of Justice have tentatively agreed to a record $13 billion settlement of civil investigations into possible fraudulent sales of mortgage-backed securities before and during the 2008 financial crisis, according to a Bloomberg report.

The settlement would be the largest amount ever paid by a financial firm to the U.S. government but would not release the bank from potential criminal liability on alleged fraudulent sales.

"To not get the waiver from criminal prosecution is not good," Nancy Bush, a bank analyst, told Bloomberg. "What we're looking for in a settlement of this size is certainty from things like the criminal prosecution of a company. The Street wants certainty."

The Bloomberg piece notes that the settlement "would amount to more than half of JPMorgan's record $21.3 billion profit last year."

The settlement comes as some are questioning whether JPMorgan's CEO Jamie Dimon should continue running the company. Allie Jones at The Atlantic Wire reported that on CNBC last month, Alex Pareene, a politics writer at Salon, called for Dimon to be fired.

"I think that any time you're looking at the greatest fine in the history of Wall Street regulation, it's really worth asking should this guy stay in his job. In any other industry - I can't think of another industry. If you managed a restaurant, and it got the biggest health department fine in the history of restaurants, no one would say, 'Yeah, but the restaurant's making a lot of money. There's only a little bit of poison in the food,' ” Pareene said.

But Jones said CNBC anchor Maria Bartiromo defended Dimon, responding, "The company continues to churn out tens of billions of dollars in earnings and hundreds of billions of dollars in revenue. How do you criticize that?"

Bartiromo is not the only one to come to Dimon's defense. Andrew Ross Sorkin at the New York Times' Dealbook wrote last week on those who are defending Dimon from the "bloodlust of pundits" calling for his removal.

"Jamie Dimon is one of the best C.E.O.’s of any company in the world," Marvin C. Schwartz, a managing director at Neuberger Berman and a longtime investor in JPMorgan, told Sorkin. "It doesn’t mean you can’t have an accident. It’s totally unfair to say he inflicted this upon himself."


Original Post

Copyright 2013 Deseret Digital Media, Inc.

  • Local NewsLocal NewsMore>>

  • Caesars enters New York casino competition

    Caesars enters New York casino competition

    Tuesday, April 22 2014 10:52 PM EDT2014-04-23 02:52:22 GMT
    Caesars Entertainment entered the competition to open a casino in upstate New York on Tuesday with a proposal to build a $750 million complex 50 miles north of New York City. The complex would include a casino, a hotel and a meeting space and would be located in Woodbury, in Orange County. The Las Vegas-based Caesars, which operates 52 casinos around the world, has submitted a $1 million casino license application fee to state gambling regulators.
    Caesars Entertainment entered the competition to open a casino in upstate New York on Tuesday with a proposal to build a $750 million complex 50 miles north of New York City. The complex would include a casino, a hotel and a meeting space and would be located in Woodbury, in Orange County. The Las Vegas-based Caesars, which operates 52 casinos around the world, has submitted a $1 million casino license application fee to state gambling regulators.
  • Hoax 'swatting' call sends dozens of cops to LI home

    Hoax 'swatting' call sends dozens of cops to LI home

    Tuesday, April 22 2014 10:43 PM EDT2014-04-23 02:43:53 GMT
    Heavily armed police officers descended on a home in Long Beach, Long Island, Tuesday afternoon thinking they might find a grisly murder scene. Instead they found a terrified woman who had no clue what they were talking about and her teenaged son playing video games. "We received a phone call from a gentleman who stated he had just shot his mother and his brother," Long Beach Police Commissioner Michael Tangney said. "Unfortunately, this is a terrible national problem for law enforcement."
    Heavily armed police officers descended on a home in Long Beach, Long Island, Tuesday afternoon thinking they might find a grisly murder scene. Instead they found a terrified woman who had no clue what they were talking about and her teenaged son playing video games. "We received a phone call from a gentleman who stated he had just shot his mother and his brother," Long Beach Police Commissioner Michael Tangney said. "Unfortunately, this is a terrible national problem for law enforcement."
  • NYPD Twitter hashtag backfires

    NYPD Twitter hashtag backfires

    Tuesday, April 22 2014 9:14 PM EDT2014-04-23 01:14:35 GMT
    An NYPD plan intended to better connect with the community seems to have backfired a bit. The police department asked its twitter followers to share pictures of themselves with New York City police officers using the hashtag "myNYPD." Some did share nice pictures, but others not so much.Some of the first pictures posted showed regular citizens standing with very friendly looking police officers.
    An NYPD plan intended to better connect with the community seems to have backfired a bit. The police department asked its twitter followers to share pictures of themselves with New York City police officers using the hashtag "myNYPD." Some did share nice pictures, but others not so much.Some of the first pictures posted showed regular citizens standing with very friendly looking police officers.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices