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Forget the low end of JPMorgan's (JPM) assertion of $0-$6B in possible losses from the FHFA...

Forget the low end of JPMorgan's (JPM) assertion of $0-$6B in possible losses from the FHFA lawsuit over $33B in MBS, writes Alison Frankel. A judge's Monday decision allowing the suit (and a similar one against Merrill Lynch) to go forward blew up nearly every argument made by the banks, including the key one that Frannie - being so sophisticated with MBS - should have known better. The banks don't want this is front of a jury. Look for a settlement before the summer 2014 trial date.
Comments (25)
  • thank goodness our corruption is good old fashioned corporate corruption, not like that chinese corruption over there in china! phew!
    11 Nov 2012, 08:52 AM Reply Like
  • Sounds like you are ready to accept a Chinese form of communism. I assme you voted for Obama.
    12 Nov 2012, 11:47 AM Reply Like
  • The big banks are poised to fall further. First Obama, now this - and many others - lawsuits...
    SHORT BAC and JPM and if you wish to hedge combine it with LONG C
    11 Nov 2012, 08:59 AM Reply Like
  • Short JPM and long C? Talk about biased and unsubstantiated opinion
    23 Jan 2013, 04:00 PM Reply Like
  • Fact: in the last 3 months C share price went up 13.91% and JPM share price went up 11.86% so you still have a NET 2% gain (for a hedged strategy)
    24 Jan 2013, 06:44 AM Reply Like
  • One argument the judge didn't blow up: Fannie and Freddie were privately owned when they bought the mortgages.
    11 Nov 2012, 09:09 AM Reply Like
  • Not only were Fannie and Freddie private, mostly at the urging of Republicans, but they were followers of what was happening in the rest of the private market. They adjusted to compete.

     

    Let's downsize banks so they can be held responsible by the market rather than making the market succumb to big, monopolistic enterprises.
    11 Nov 2012, 06:42 PM Reply Like
  • Too bad they could not include commodity manipulation as well....
    11 Nov 2012, 09:14 AM Reply Like
  • It will be settled, the documents will be frozen in a vault and never shown to the public, and Dimon will get a big bouus from his board.

     

    On to the next cycle.
    11 Nov 2012, 10:08 AM Reply Like
  • Will the uber-smart Jamie Dimon ever take one for the team?

     

    More evidence that Mr. Dimon is not the smartest person in the room.

     

    Did CNBC ask about any of this when Mr. Dimon appeared with them Friday morning?
    11 Nov 2012, 11:27 AM Reply Like
  • CNBC asking the right questions? LOL.
    11 Nov 2012, 11:58 AM Reply Like
  • CNBC interested in consumers of financial services?
    11 Nov 2012, 06:42 PM Reply Like
  • Do any of you folks own the banks? If you are just bank haters why do you follow the stocks on SA?
    11 Nov 2012, 01:12 PM Reply Like
  • Wouldn't you follow banks stocks whether you're long or short?
    As a matter of fact, wouldn't you follow banks stocks regardless of any position you hold simply because banks stocks are a main driver of the market direction (either way)?
    11 Nov 2012, 03:24 PM Reply Like
  • I did and it was a bad bad decision.
    11 Nov 2012, 03:37 PM Reply Like
  • Is there anything left in crooked America we must prosecute?

     

    We already have since 1990 only fools in Government, add Wall Street, the Banks, all the lobbyist in Washington and there is no one left!
    11 Nov 2012, 01:36 PM Reply Like
  • JPM with it's 19B in after taxes profit will withstand the lawsuit, that I believe will be settled, even if it goes to a jury the trial will dag out for a long time with appeals and such, giving JPM time to raise the money to pay it without much impact. If JPM stock goes down I will buy more and hold for a time when it goes back up, and the evidence is there that it will go back up.
    11 Nov 2012, 06:39 PM Reply Like
  • Could you be more specific about the evidence that it will go back up?
    12 Nov 2012, 11:15 AM Reply Like
  • daniel......
    Check out the spike in CDS for JPM today.
    12 Nov 2012, 11:42 AM Reply Like
  • daniel....
    Scratch my last, wrong stock. I misread the symbol.
    12 Nov 2012, 12:19 PM Reply Like
  • The cost to the economy in lost bank lending will far exceed any losses sustained by these banks.
    11 Nov 2012, 07:37 PM Reply Like
  • Going to be looking at the advent of Fannie and Freddie and it's opposition at the beginning of its inception, going to compare it to Obama Care's possibly future problems, and see if I can see any correlations. The Community Reinvestment Act, Christopher Cox, Greenspane; there is a lot of factors why things where left unchecked. Did any government official receive any political contributions from either Fannie or Freedie ?
    12 Nov 2012, 06:55 AM Reply Like
  • Obamacare will ultimately put all medical care into the hands of the federal government and obamas death panels. As obama has said it is the first step to a one payer system. People who do not meet their quality of life standard may as well go ahead and commit suicide and save themselves a lot of pain, because they will be denied the medical care they need to survive. Us old folks will be hit the hardest. One only has to look at Romney cares denial of a women's cancer treatment to get an idea of what the future holds for seniors in the US.
    12 Nov 2012, 11:24 AM Reply Like
  • John Roberts is the biggest traitor to the American people in history. Ruling that Obamacare forcing people to buy insurance was a tax, when the the congress, senate and executive branches clearly intended it to be a penalty and said so over and over again. The intent of congress was at one time an important factor in interpreting the laws of congress. I can't adequately express my contempt for this man since people are now being arrested for posting negative comments on the internet about politicians. American's freedom of speech has been abridged and one must wonder how much longer Americans will have the ability to elect their leaders in free elections.
    12 Nov 2012, 11:37 AM Reply Like
  • Freddy and Fanny are the real culprits! I hope the judge nails them big time. The people leading Fanny and Freddy were total crooks!
    3 Apr 2013, 04:05 PM Reply Like
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