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JPMorgan enters into $13B settlement with states, federal government

IL Staff
November 20, 2013
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JPMorgan has agreed to pay a record $13 billion to settle federal and state civil claims arising out of its packaging, selling, marketing and issuance of residential mortgage-backed securities, the Department of Justice announced Tuesday.

JPMorgan admitted that it made serious misrepresentations to the public about RMBS transactions made prior to Jan. 1, 2009, including that the mortgage loans in various securities complied with underwriting guidelines. In fact, employees knew that the loans were not appropriate for securitization, but allowed the loans to be securitized and then sold without disclosing this information to investors.

These transactions by JPMorgan and other banks contributed to the financial crisis, according to the DOJ.

The settlement is the largest settlement with a single entity in American history. Of the $13 billion, $9 billion will be paid to settle state and federal claims related to RMBS. The remaining $4 billion will go to relief for consumers harmed by the conduct of JPMorgan, Bear Stearns and Washington Mutual, which includes loan modification and efforts to reduce blight.

JPMorgan assumed significant assets of Washington Mutual Bank, which is why it is being held responsible for the conduct of that bank.

U.S. Attorney General Eric Holder and the state attorneys general who worked on the Financial Fraud Enforcement Task Force’s RMBS Working Group lauded the settlement.

“Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” said Attorney General Eric Holder. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior. The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability.”
 

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  1. Video pen? Nice work, "JW"! Let this be a lesson and a caution to all disgruntled ex-spouses (or soon-to-be ex-spouses) . . . you may think that altercation is going to get you some satisfaction . . . it will not.

  2. First comment on this thread is a fitting final comment on this thread, as that the MCBA never answered Duncan's fine question, and now even Eric Holder agrees that the MCBA was in material error as to the facts: "I don't get it" from Duncan December 1, 2014 5:10 PM "The Grand Jury met for 25 days and heard 70 hours of testimony according to this article and they made a decision that no crime occurred. On what basis does the MCBA conclude that their decision was "unjust"? What special knowledge or evidence does the MCBA have that the Grand Jury hearing this matter was unaware of? The system that we as lawyers are sworn to uphold made a decision that there was insufficient proof that officer committed a crime. How can any of us say we know better what was right than the jury that actually heard all of the the evidence in this case."

  3. wow is this a bunch of bs! i know the facts!

  4. MCBA .... time for a new release about your entire membership (or is it just the alter ego) being "saddened and disappointed" in the failure to lynch a police officer protecting himself in the line of duty. But this time against Eric Holder and the Federal Bureau of Investigation: "WASHINGTON — Justice Department lawyers will recommend that no civil rights charges be brought against the police officer who fatally shot an unarmed teenager in Ferguson, Mo., after an F.B.I. investigation found no evidence to support charges, law enforcement officials said Wednesday." http://www.nytimes.com/2015/01/22/us/justice-department-ferguson-civil-rights-darren-wilson.html?ref=us&_r=0

  5. Dr wail asfour lives 3 hours from the hospital,where if he gets an emergency at least he needs three hours,while even if he is on call he should be in a location where it gives him max 10 minutes to be beside the patient,they get paid double on their on call days ,where look how they handle it,so if the death of the patient occurs on weekend and these doctors still repeat same pattern such issue should be raised,they should be closer to the patient.on other hand if all the death occured on the absence of the Dr and the nurses handle it,the nurses should get trained how to function appearntly they not that good,if the Dr lives 3 hours far from the hospital on his call days he should sleep in the hospital

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