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Thursday, Oct 3
JPMorgan deal would enable it to avoid tough judge
- One of JPMorgan's (JPM) motivations for trying to agree to an $11B global settlement that would resolve a number of investigations, including into allegations that it mis-sold mortgage bonds to Freddie Mac and Fannie Mae, could be that it wants to avoid a trial with the judge assigned to case, Denise Cote.
- The judge is known as no friend of the banks, whether that be because of her rulings over the collapse of WorldCom a decade ago, or because of the Freddie Mac and Fannie Mae cases, which involve several other banks as well.
- "You're on a truck on an icy downhill cliff heading toward a turn and you know it's going to be an awful outcome," says one layer.
- "She's got an acute sense for a whiff of fraud. She can smell it," says Columbia law professor John Coffee.