Tuesday, September 24, 2013
When JPMo bought WaMu
Jaime Dimon thought he was getting a bargain for pennies on the dollar. And for some reason he thought he could escape the consequences of buying one of the largest producers of fraudulent mortgages in the country.
In the mortgage cases, though, the bank is continuing to fight. That decision stems in part from a belief at JPMorgan, the people close to the bank said, that the government is punishing it for practices that did not occur under its watch.The actions may not have been on JPMo's watch, but they bought into the problem when they bought WaMu. Time for Dimon to shut up and pay up before some one finds out "he still beats his wife".
The bank, for example, faces investigations into the mortgage business it inherited from Washington Mutual, a troubled lender it purchased amid the crisis.
And Eric T. Schneiderman, the New York attorney general, sued JPMorgan last October, accusing Bear Stearns and its lending unit, EMC Mortgage, of defrauding investors who purchased mortgage securities packaged by the companies from 2005 through 2007. JPMorgan, through a deal backstopped by the government, took over Bear Stearns in 2008.
Shortly after Mr. Schneiderman filed the lawsuit, Mr. Dimon called the action “unfair” during a talk at an event in Washington for the Council on Foreign Relations. JPMorgan, the bank chief said, was being penalized for purchasing Bear Stearns in 2008 as “a favor” to the Federal Reserve.
The $22 billion settlement pitched by the Department of Housing and Urban Development, and summarily rejected by JPMorgan, would have settled both the Washington Mutual investigations and the New York case, the people briefed on the matter said. It is unclear whether it would have put to rest the mortgage investigation by prosecutors in California.
Subscribe to Posts [Atom]
Post a Comment