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Jpmorgan To Pay $614 Million In U.s. Mortgage Fraud Case

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http://uk.reuters.com/article/2014/02/05/uk-jpmorgan-settle-idUKBREA1404L20140205

JPMorgan Chase & Co (JPM.N) settled the latest in a string of legal claims on Tuesday when it agreed to pay $614 million to the U.S. government and admitted that it defrauded federal agencies by underwriting sub-standard mortgage loans.

JPMorgan, the largest U.S. bank by assets, said as part of the settlement that for more than a decade it approved thousands of insured loans that were not eligible for insurance by the Federal Housing Administration or the Department of Veterans Affairs, according to court papers.

As a consequence, "both the FHA and the VA incurred substantial losses when unqualified loans failed and caused the FHA and VA to cover the associated losses," the U.S. Justice Department said in a statement.

JPMorgan is one of several banks that has faced similar allegations. Citigroup Inc (C.N) and Deutsche Bank AG (DBKGn.DE) have also reached settlements, while the Justice Department is seeking $2.1 billion in penalties from Bank of America Corp (BAC.N) after a jury found the bank liable for fraud over mortgages sold by its Countrywide unit.

So fraud is committed but because it was by a bank everyone involved escapes jail. Now if I try to defraud JP Morgan I'm guessing that paying a fine and avoiding jail won't be an option given.

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http://uk.reuters.com/article/2014/02/05/uk-jpmorgan-settle-idUKBREA1404L20140205

So fraud is committed but because it was by a bank everyone involved escapes jail. Now if I try to defraud JP Morgan I'm guessing that paying a fine and avoiding jail won't be an option given.

I'd call it insane, but not sending bankers to jail seems to be an actual policy... yeah, fine them - that'll learn 'em (here, have some more cheap money).

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I'd call it insane, but not sending bankers to jail seems to be an actual policy... yeah, fine them - that'll learn 'em (here, have some more cheap money).

It's generally referred to as a 'Competitive regulatory environment', since it was found by the People That Matter that the previous regulatory environment ('Just Don't Get Caught') was far too restrictive.

http://www.metroactive.com/papers/metro/05.22.97/cover/mobutu-9721.html

Zaire is an unofficial "kleptocracy," where soldiers loot, policemen mug and hospital nurses won't admit patients without a bribe. Mobutu once told citizens at a public rally, "Go ahead and steal, but don't steal too much, or you will get caught."

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They're basically saying - go and do it again, the profit far exceeded the fine. It's win-win all round. And American's have guns - I'm amazed they don't use them more.

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Never stops...

http://www.reuters.com/article/2014/02/05/jpmorgan-settle-idUSL2N0L928N20140205

On Tuesday a federal bankruptcy judge approved the bank's $543 million deal to end two private lawsuits stemming from its relationship with convicted Ponzi scheme mastermind Bernard Madoff. Last month, the bank separately agreed to pay more than $2 billion to settle criminal charges related to the Madoff fraud.

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They're basically saying - go and do it again, the profit far exceeded the fine. It's win-win all round. And American's have guns - I'm amazed they don't use them more.

Don't worry, they'll use them just as soon as Obama reveals himself as a Communist and declares that he is taking over Right Now and taking everyone's guns. They are really well prepared for that happening.

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Gabriel Magee, the guy who threw himself off the JP Morgan building last week wasn't actually a trader or a banker but the Lead Architect of JPM's trading system. He'd have to have known the ins and outs of every currency and fixed income trade JPM made in the last ten years, who approved what and when. There's a good chance he had a more complete grasp of JPM's history than anybody bar Jamie Dimon.

Convenient guy to have out the way if the Feds are closing in, wouldn't you say?

FWIW, here's his linkedin profile.

http://uk.linkedin.c...magee/1/221/517

Edited by zugzwang

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