Thursday, August 8, 2013

J.P. Morgan Bank Faces Criminal Charges

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I've been covering JP Morgan Chase Bank for a long time, and there is just so much wrong with the way they do business! But because CEO Jamie Dimon is slippery and charismatic, they have drifted along without legal consequences even while making shady deals (The London Whale) and losing tons of money for their investors.

Let's face it - we need accountability to have closure for what happened in 2008 when the stock market crashed. And these Wall Street banks are still playing fast and loose with OUR money! As Elizabeth Warren said, "Too big to fail has become too big for trial."

Previous Posts:
May 12, 2012: The London Whale
May 18, 2012: JP Morgan Fall-Out Continues
June 14, 2012: Dimon Cozies Up to Senate Banking Committee
March 17, 2013: Senate Grills JP Morgan Bank

Now JP Morgan is under criminal investigation from both Federal and State Officials:

From Huffington Post
The Justice Department told JPMorgan in May that prosecutors had “preliminarily concluded” that the bank violated civil securities laws related to mortgage securities it packaged and sold from 2005 to 2007, the bank disclosed in a quarterly securities filing. JPMorgan has already been sued over similar practices by Eric Schneiderman, New York attorney general, and has settled similar cases brought by the Securities and Exchange Commission.
. . . JPMorgan -- once a darling in Washington -- on Wednesday disclosed a raft of expected enforcement actions that have been broadly mentioned by the bank and its chief executive and chairman, Jamie Dimon, but never before in such detail. Once finalized, the enforcement orders may further damage the bank’s already-battered reputation and lead to heightened scrutiny of its practices.
The Consumer Financial Protection Bureau is investigating JPMorgan's collection and sale of delinquent consumer credit card debt, including its use of sworn documents to pursue bad debts. Kamala Harris, California attorney general, has sued the bank over similar practices.

From Reuters
One of the major criticisms by homeowners, investors and politicians is that federal and state investigators have failed to bring criminal charges against high-level executives over lending and securitization activities that contributed to the housing and financial crises. No top executives at large Wall Street or commercial banks have been convicted of criminal charges related to the crises.
"Criminal probes of banks over MBS have been exceedingly rare," said Adam Levitin, a professor at Georgetown Law.

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