To: ChinuSFO who wrote (135242 ) 7/30/2013 2:30:23 PM From: RetiredNow 1 RecommendationRecommended By
Respond to Chinu, what I'm saying is that paying a fine is not a sufficient deterrent. For example, if you went out and stole $50,000 from your neighbor, were caught by the police, and were fined only $10 for the crime with no jail time, no criminal record, and no need to return the stolen money, then you might think you've just invented the best business of all time. Getting caught for committing a crime, just became a cost of doing business to you. This is precisely what the big banks are doing. They are stealing and defrauding the American public of hundreds of billions and only paying small fines in comparison. No one is going to jail. There is no deterrent to ensure these guys quit doing these things.Daily Beast :Date: April 2011 Amount: $56 million Behavior: JPMorgan was one of several banks called out in a class-action lawsuit for overcharging or wrongfully foreclosing on active-duty military personnel. The company apologized, paid out $27 million in cash, cut interest rates on home loans and returned houses that were wrongfully foreclosed upon.Date: June 2011 Amount: $153.6 million Behavior : The Securities and Exchange Commission sued JPMorgan for misleading buyers by allegedly failing to inform investors that a hedge fund assisted in picking and betting against securities in a collateralized debt obligation JPMorgan had sold in 2007. JPMorgan paid $153.6 million to settle the charges without admitting or denying the allegations.Date: July 2011 Amount: $229 Million Behavior: In response to a suit by federal and state authorities, JPMorgan settled allegations that it rigged the bidding process for reinvesting bond transactions that affected 31 state governments. The bank paid $229 million to settle the charges without admitting or denying the allegations.Date: August 2011 Amount: $88.3 Million Behavior: Talk about shady dealings. The Treasury Department alleged the banking giant violated sanction orders by conducting transactions with people or entities tied to Iran, Sudan, Cuba, and Liberia. JPMorgan Chase settled the charges and violations by paying $88.3 million civil penalty.Date: February 2012 Amount: $5.29 Billion Behavior: JPMorgan and four other major mortgage servicers agreed to pay a combined $25 billion to settle charges with state attorneys general, the Justice Department, and the Department of Housing and Urban Development relating to what Washington Attorney General Rob McKenna called years of “shoddy loan servicing, illegal robo-signing, and faulty foreclosure processing.” JPMorgan Chase’s share of the settlement came to $5.29 billion.Date: February 2012 Amount: $110 million Behavior: Along with Bank of America and a few smaller lenders, JPMorgan settled consumer litigation that claimed the banks processed checks by size—rather than by chronological order—so they could charge unwarranted overdraft fees.Date: March 2012 Amount: $150 million Behavior: After being sued by pension funds and investors for investing their funds in a risky structured investment vehicle that failed at the height of the global financial crisis in 2008, JPMorgan settled the suit without admitting wrongdoing.Date: November 2012 Amount: Behavior : The Securities and Exchange Commission charged JPMorgan with misleading investors about the quality of mortgages that underlay mortgage-backed securities it sold. The bank settled the charges without admitting or denying guilt.Date: January 2013 Amount: Unclear Behavior : Ten banks, including JPMorgan Chase, agreed to an $8.5 billion settlement with the Office of the Comptroller of the Currency and the Federal Reserve over “robo-signing” and other alleged abuses of the foreclosure process. The banks were to pay $3.3 billion to harmed borrowers and provide a combined of $5.2 billion in assistance in the form of principal reductions or mortgage modifications. JPMorgan Chase didn’t disclose its share of the settlement.Date: March 2013 Amount: $100 million Behavior: JPMorgan Chase agreed to return $546 million to former customers of MF Global Holdings, the investment firm run by former New Jersey governor Jon Corzine that collapsed in 2011. While it did not admit wrongdoing, JPMorgan had been threatened with a lawsuit if it didn’t return the cash that had been transferred from MF Global during the firm’s chaotic final days.Date: July 2013 Amount: $410 million Behavior: FERC accuses JPM of manipulating energy prices. JPM "admitted the facts" it was charged with, but "neither admitted nor denied the violations. fines " amount to $6.9 billion in fines.Moral: when you cheat in big enough size, it's legal.. That is what Jeff Skilling and Jon Corzine did not understand. What they did was ok if it was 10 times larger ."
