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Report: $11B now the amount in JPMorgan national settlement

  • The JPMorgan (JPM +2.4%) national settlement deal could be as high as $11B, reports the AP. The bank's lowball offer had been $3B, and a report earlier today suggested the bank may have to pay up to $7B.
  • The stock price actually ticked up a bit as the news hit the wires - that amount is far less than the $20B bandied about earlier in the week.
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Comments (25)
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    So JPM has ripped off untold amounts from everyday citizens, yet they have to pay the government?

     

    This is just a government shakedown for some money, not actually acting sheriff, as that cost a lot and does not bring in more than 99.9% of other businesses in their lifetime.

     

    Then there is the issue for new members in JPM and now they have less to work with and for, and they did nothing.

     

    JP Morgan is a piece of paper, this fine is payed for by the same people that got screwed in the beginning.
    25 Sep 2013, 03:03 PM Reply Like
  • medzjohn
    , contributor
    Comments (249) | Send Message
     
    Help me out, Mo. Are you saying JPM stole it fair and square so the government should do nothing?
    25 Sep 2013, 06:58 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (570) | Send Message
     
    The government extorted money from JPM shareholders because BHO doesn't like Jamie Dimon.
    25 Sep 2013, 09:09 PM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    @ Medzjohn

     

    No Sir, I am saying they stole it, got caught and it was taken by the bigger thief.
    26 Sep 2013, 08:12 AM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    This is the equivalent of calling the government when your car is stolen, then they recover the car and keep it.

     

    But it is good enough for the press and seems right so it will sail.
    25 Sep 2013, 03:05 PM Reply Like
  • name999
    , contributor
    Comments (162) | Send Message
     
    The government is looking for 20B, and they have plenty of time and resource to keep all these going. The number probably will go even higher.
    25 Sep 2013, 03:31 PM Reply Like
  • philipmax
    , contributor
    Comments (262) | Send Message
     
    JEEESH, What a crock!

     

    As others pointed out, JPM steals $Billions pays 3 cents on a Dollar, 5 years later - fully recovering all costs of legal and fines - just with interest earned on the stolen money. Government and JPM gets to keep it all. All investors are losers.
    Someone's got to get a hold of these Communist leaders in our government and remind them that this is a capitalist system. The STOCKHOLDERS are supposed to be the kings, not thieving bureaucratic "Operochics" at Treasury.
    Bear Stearns was bought for $1Bil.
    Washington Mutual was bought for $1 Bil.
    Together, they were worth $300 Bill.
    Bought from the same Operochics at Treasury. Now they pay $10 Bil to Treasury and wash away their sins.
    What about the BS and WAMU shareholders? What about the current JPM shareholders?
    What about Justice?
    What about EQUITABLE allocations to those who lost $Bils.
    What about fraudulent culpability of the perpetrators?

     

    This just stinks all over, again and again.
    25 Sep 2013, 03:33 PM Reply Like
  • DAG1996
    , contributor
    Comments (3175) | Send Message
     
    Wow! The number just keeps going up! Within the last 24 hours, first I saw $3B, a few hours later $5B, then $7B, now $11B ... at this rate it should be $1T by tomorrow morning!
    25 Sep 2013, 04:11 PM Reply Like
  • dieuwer
    , contributor
    Comments (2405) | Send Message
     
    The monies to plug the deficit have to come from somewhere...
    25 Sep 2013, 04:26 PM Reply Like
  • DAG1996
    , contributor
    Comments (3175) | Send Message
     
    Ironically, in the early days of our nation, that's actually how the government would fund huge and otherwise impossible expenses like wars ... by going to a handful of the richest guys in the world ... like JP Morgan (the guy, not the company). Perhaps that hasn't really changed as much as we like to believe.
    25 Sep 2013, 05:15 PM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    "The monies to plug the deficit have to (be stolen) come from somewhere..."

     

    Is that how you guys do it in France? Seriously, I want to know why you think this is right on any level. It is theft and you condone it?
    26 Sep 2013, 08:15 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5580) | Send Message
     
    Jamie Dimon is the best CEO in the business world...at least that is what I have heard...

     

    Under Mr. Dimon's watch, JPM has lost a ton of money. This is before the $11B, if that is the final number.

     

    http://bit.ly/18IrZXj
    25 Sep 2013, 08:32 PM Reply Like
  • DAG1996
    , contributor
    Comments (3175) | Send Message
     
    Note that I'm not defending Dimon or anything JPM may (or may not) have done wrong, but a few things to consider ...

     

    It is indeed true that most financial firm CEOs and other executives consider Dimon the "the smartest guy on Wall Street". Such a comment was once made directly to me from a very well-respected CEO of a well-known and respected Wall Street firm (one of the few that has never had any 'scandals' and actually thrived during the 'great recession' due to top-notch conservative management).

     

    There's a difference between having large losses and 'losing money'. For example, my investment portfolios have had large losses on occasion, but at the end of the day, have never lost money. Losses are part of the cost of doing business in finance, no? JPM has never 'lost money'.

     

    The general public couldn't realize this, but everyone on Wall Street knows that Dimon has basically been targeted by powerful congressmen as retaliation for being so outspoken about poorly thought out regulatory changes affecting the financial system. I'm not smart enough to know whether he is right about that, but I do know retaliation for dissent isn't ethical or respectable.
    25 Sep 2013, 08:52 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (570) | Send Message
     
    If JPM is has "lost a ton of money" is that mass measured in $100 bills, $1 bills, or pennies and I formally request that I lose a scale factored like sum!
    The "London Whale" was prop trading and cost taxpayers nothing. ," JPMorgan Chase reported second-quarter 2012 net income of $5 billion on revenue of $22.9 billion, net of the trading loss in London. This was down from $5.4 billion in the second quarter of 2011 but not fiasco.
    The cruncher is the government and its unelected de facto legislative, executive, and judicial branches rolled into a single regulatory agency. America's biggest bank, JP Morgan, made a loss in the third quarter of 2013 after legal expenses of $9.2bn (£5.8bn) caused by a wave of regulatory investigations and potential lawsuits.
    Those of you who believe that government is the solution and not the biggest dirty player in the American economic landscape had best recall the evolutionary genesis of this tale of "corporate greed."

     

    The chief executives of the country's nine largest banks had no choice but to accept capital infusions from the Treasury Department in October, government documents released Wednesday have confirmed. Documents obtained and released by Judicial Watch, a nonpartisan educational foundation, the documents reveal "talking points" used by then-Treasury Secretary Henry Paulson during the Oct. 13 meeting between federal officials and the executives that stressed the investments would be required "in any circumstance," whether the banks found them appealing or not.

     

    Paulson also told the bankers it would not be prudent to opt out of the program because doing so "would leave you vulnerable and exposed."
    It's no secret that some of the banks had to be pressured to participate, with several CEOs saying they had been strongly encouraged to take the funds. But the documents are the first proof of the government's insistence.
    "These documents show our government exercising unrestrained power over the private sector," Judicial Watch president Tom Fitton said in a statement.

     

    Paulson's spokeswoman, Michele Davis, who was a top aide when Paulson was at Treasury, yesterday said, "Secretary Paulson was not one to read talking points at meetings."

     

    Treasury Secretary Timothy Geithner's office did not respond to requests for comment.

     

    The outcome of that fateful meeting - it resulted in the government taking direct stakes in the banks through $125 billion in preferred stock purchases - marked a shift in the government's strategy to fixing the financial system.

     

    FORTUNE -- In another sign of the huge changes within the banking business since the financial crisis, Wells Fargo (WFC) is on pace to make more money this year than any other bank in the U.S.
    Analysts expect the San Francisco-based bank to make $20.8 billion for 2013. That's more than Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS) are expected to earn combined this year. And it's $3.5 billion more than Wells' closest profit rival, JPMorgan Chase (JPM), which had held the largest profit title for three years in a row.
    But JPMorgan's legal woes have cleared the road for the Wells Fargo wagon to take the lead in the profit race. JPMorgan is in the process of negotiating a $13 billion settlement with regulators related to the bank's mortgage business. http://bit.ly/1cgUtNS
    20 Dec 2013, 08:39 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5580) | Send Message
     
    $28B is the number mentioned in the link I provided. This is before the latest $11B.

     

    That's almost $40B that has been lost. Is this really just the cost of doing business or is it the cost of doing business poorly?

     

    Congressmen had nothing to do with the London Whale mess, mortgage bond issues, aluminum manipulation, or LIBOR issues. Throw in the troubles in Italy just for kicks.
    25 Sep 2013, 09:17 PM Reply Like
  • spinrbait
    , contributor
    Comments (374) | Send Message
     
    it is the cost of the " occupy mob" being elected to power by the mob. if you own 1 share in a company, the president of the united states hates your guts. it will get worse before it gets better.
    26 Sep 2013, 09:06 AM Reply Like
  • DAG1996
    , contributor
    Comments (3175) | Send Message
     
    My point was simply that, if I make a half dozen trades today and lose $20 on each of two and make $20 each on the other four, I don't see that as having lost $40.

     

    Beyond that, as I said, I'm not defending Dimon or anything JPM may (or may not) have done wrong. I see it as futile to pass judgment on issues for which, as a regular citizen, I could not possibly know the pertinent facts. I do, however, question whether headlines are compelling evidence, the court of public opinion is an appropriate forum and columnists are indeed the ultimate judge.
    25 Sep 2013, 09:49 PM Reply Like
  • 1547ogden
    , contributor
    Comments (6) | Send Message
     
    this is the norm for the socialistic democrat party.
    25 Sep 2013, 10:32 PM Reply Like
  • pfifla1
    , contributor
    Comments (505) | Send Message
     
    Lets see.... The London whale saga... JPM rogue trader (under poor oversight) makes untold incorrect trades and loses a ton of dough... share price goes down, investors are hurt... How much money did the gov't have to come out of pocket to cover the losses? none... did JPM even lose money that quarter? no.

     

    so lets see.. the losses generated no meaningful impact to the gov't except to provide them the opportunity fleece money from shareholders to finance more poor policy decisions. Is the banking industry now BHO's private piggy bank? Now when a bank makes a calculated mistake will we have to first pay for it with the actual losses, then again to pay the gov't to let us lose the money?

     

    where does the money go? into more bloated oversight committees? If anything the money should be put into protection plans to guard against financial calamities. but that would make too much sense.
    26 Sep 2013, 12:30 AM Reply Like
  • Guest1234
    , contributor
    Comments (81) | Send Message
     
    I'm tired of "mainstreet" populist (hipster) bank bashing. JPmorgan equity holders won out in the financial crisis (they were winners other bank equity holders were losers). Now the bank made a legal mistake with fixing libor and shareholders are at this point, also accountable for the banks decisions (in the pursuit of profit). Nothing strange going on here except for the size of the fine.
    26 Sep 2013, 01:23 AM Reply Like
  • SoCalNative
    , contributor
    Comments (488) | Send Message
     
    "I'm tired of "mainstreet" populist (hipster) bank bashing"

     

    Well said. They're jealous of Dimon's success and power. My guess is not one of them are even shareholders. They probably don't own shares in anything. They're taking part in America's new pastime: second-guessing millionaires. Pathetic.
    26 Sep 2013, 06:44 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5580) | Send Message
     
    I have taken shots at Jamie Dimon at every opportunity, and there have been plenty of them. I do not own shares of JPM. I do have an extensive portfolio and have been investing for over 25 years. I am not second-guessing millionaires, only the way JPM conducts its business.
    I would not label my opinions on Mr. Dimon as pathetic, but we are all entitled ot our opinions, aren't we?
    26 Sep 2013, 07:37 AM Reply Like
  • spinrbait
    , contributor
    Comments (374) | Send Message
     
    you are entitled to your own opinions. but not your own facts
    26 Sep 2013, 09:08 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5580) | Send Message
     
    Not once have I made up my own facts when commenting on Mr. Dimon and JPM.

     

    I provide links to articles that state the facts, just as I did above.
    26 Sep 2013, 04:19 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Chase is a shizhole. I'm a former employee. If you guys saw some of their facilities especially on the Mortgage Servicing side the JPM defenders would have a very different view. Kinda like how some people give up on eating meat after visiting a plant and actually seeing how their "food" is processed.
    26 Sep 2013, 09:19 AM Reply Like
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