JPMorgan Chase has settled with the DOJ for bundling up and selling toxic mortgages as derivatives to unsuspecting investors. The settlement is $13 billion. The news prompted another round of #AskJPM twitter mega sarcasm.
This week in outrageous economic shorts we quote insightful articles covering the JPMorgan Chase $13 billion settlement for bundling bad mortgages and pawning them off to unsuspecting investors. The case is due to the actions of two acquisitions made by JPMorgan Chase, Bear Stearns and Washington Mutual.
Women are still low on the economic totem pole. A new Census report shows nothing has changed, women still make 77¢ to a male's dollar when both are working at full-time jobs and if one includes part-time, the ratio is even lower, 71¢. Worse than that, women with families and no husband around make the lowest median income of all, $34,002.
The headlines blaze criminal charges for SAC Capital Advisors, a wayward hedge fund. Yet if one reads the Southern district of New York indictment, it is fairly obvious the owner is getting off the hook.
Just when you think they all got completely away with it, along comes one government regulator, the CFTC. The U.S. Commodity Futures Trading Commission issued a settlement with MF Global. The firm settlement consisted of full restitution of the $1 billion customer money lost plus a $100 million fine. Yet the CFTC also filed civil charges against former CEO Jon Corzine along with another MF Global executive, Edith O'Brien.
The most incredible headline flashed across the screen, AIG is thinking of suing the Federal Government for bailing them out. This is the company at the heart of financial contagion. AIG had created derivative dominoes where if one financial institution failed, that one institutional failure would trigger credit default swaps derivatives which in turn would collapse the entire global system.
Just when you think Justice will never be done, another civil lawsuit is filed. The FDIC filed three lawsuits against Goldman Sachs, JP Morgan Chase and BoA among others for peddling bad mortgage backed securities stuffed with toxic mortgages to their sucker, Guaranty Bank of Austin, Texas. Guaranty Bank later failed in 2009. Housing Wire:
This week, the regulator filed multiple lawsuits in Travis County (Austin), suggesting Guaranty suffered major losses from toxic RMBS loans sold and packaged by mega banks and other financial institutions.
Defendants named in the multibillion-dollar lawsuits include Countrywide, JPMorgan Chase ($38.04 0%), Ally Financial, Deutsche Bank Securities ($34.07 0%), Bank of America ($8.19 0%) and Goldman Sachs ($105.32 0%) among others.
FDIC, on behalf of Guaranty, claims the banks misrepresented loan-to-value ratios, underwriting criteria and appraisal amounts when selling, packaging and underwriting home loans that became collateral for mortgage securities sold to Guaranty.
The most incredible headline flashed across the screen, 
Just when you think Justice will never be done, another civil lawsuit is filed. The FDIC filed three lawsuits against Goldman Sachs, JP Morgan Chase and BoA among others for peddling bad mortgage backed securities stuffed with toxic mortgages to their sucker, Guaranty Bank of Austin, Texas. Guaranty Bank later failed in 2009.
Recent comments