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DIMON ARRIVES AT JUSTICE DEPARTMENT SEPT. 2013. I WANT TO KNOW WHY

DIMON ARRIVES AT JUSTICE DEPARTMENT SEPT. 2013. I WANT TO KNOW WHY

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Published by 83jjmack
J.P. Morgan's chief executive is at the Justice Department to meet with Attorney General Eric Holder.

The meeting is about an investigation into mortgage-backed securities in the run-up to the recession.
J.P. Morgan's chief executive is at the Justice Department to meet with Attorney General Eric Holder.

The meeting is about an investigation into mortgage-backed securities in the run-up to the recession.

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Published by: 83jjmack on Sep 26, 2013
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I WANT TO KNOW WHY!!

BUT WHAT ABOUT HOMEOWNER-BORROWER VICTIMS?? WHY ARE ONLY INVESTORS BEING SUPPORTED WITH THESE INVESTIGATIONS? WHY IS THE JUSTICE DEPARTMENT AND OTHER STATE INVESTIGATIVE UNITS ONLY SUPPORTING THE INVESTORS? WELL, ONE REASON MAY VERY WELL BE THAT THE JUSTICE DEPARTMENT AND OTHER FEDERAL, STATE AND LOCAL AGENCIES RETIREMENT PLANS ARE HEAVILY INVESTED IN THE MORTGAGE BACKED SECURITIES AND THE BANK STOCKS!! ALL THESE AGENCIES ARE TRYING TO PROTECT THEIR RETIREMENT PLANS AT THE EXPENSE OF THE HOMEOWNER-BORROWERS WHO ARE REALLY THE VICTIMS OF THE FRAUD. IN FACT, ONE COULD ALMOST SAY THAT THE INVESTORS ARE PART AND PARCEL TO THE FRAUD SCHEME. WITHOUT THEM FUELING THE FRENZI TO GET GREATER AND GREATER RETURNS ON THEIR INVESTMENTS---THE RICO SCHEME WOULD NOT HAVE BEEN CONCEPTUALIZED. IT SEEMS SO EASY TO BLAME THE HOMEOWNER- BORROWER. THE PATH OF LEAST RESISTANCE. THIS IS A CALL-OUT TO THE JUSTICE DEPARTMENT AND TO OTHER INVESTIGATIVE AGENCIES TO DO THE RIGHT THING AND MAKE SURE THAT HOMEOWNER-BORROWERS, WHO WERE DUPPED INTO THE RICO SCHEME, STOP GETTING BLAMED. THIS IS A CALL-OUT TO THE JUSTICE DEPARMENT AND TO OTHER INVESTIGATIVE AGENCIES TO HELP THE HOMEOWNER-BORROWERS MORE! MANY ARE STILL FLOUNDERING AROUND IN THEIR DAMN STATE COURTS. THIS IS LUDICROUS.
OPINION BY ABBY

____________________________________________________________________ WATCH SHORT VIDEO OF JAMIE DIMON ARRIVING AT JUSTICE DEPARTMENT ON SEPT. 26 2013 (FROM BLOOMBERG NEWS)
http://www.bloomberg.com/video/jpm-s-jamie-dimon-arrives-at-justice-dept~RiZJ6PdSpOoYXullHkKiQ.html

Sept. 26 (Bloomberg) -- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon arrived at the Justice Department in Washington this morning. Dimon is set to meet with Attorney General Eric Holder over the settlement discussions related to multiple mortgage bond investigations, according to a person familiar with the meeting. (Source: Bloomberg)

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JPMorgan Chase Discussing $11 Billion Settlement To End Crisis-Era Mortgage Probes
Posted: 09/25/2013 6:46 pm EDT | Updated: 09/26/2013 12:30 pm EDT

WASHINGTON -- Federal and state authorities are discussing an $11 billion settlement with JPMorgan Chase that would resolve numerous allegations of mortgage-related improprieties in the years before the financial crisis, according to people familiar with the ongoing negotiations. The deal, if struck, would settle claims brought by the Federal Housing Finance Agency, the New York attorney general and end at least three separate investigations by U.S. attorneys' offices in New York, California and Pennsylvania. The potential deal would involve a $7 billion cash payment and $4 billion in mortgage modifications for troubled borrowers. The negotiations are “developing by the hour," one person familiar with the talks said. It’s possible no deal will be struck, or that it could be much more limited and resolve only one or a few of the various probes. The bulk of the $7 billion cash payment being discussed would go to Fannie Mae and Freddie Mac, the government-backed mortgage giants regulated by FHFA. The agency, led by Edward

DeMarco, claims Fannie Mae and Freddie Mac were duped into buying junk mortgage-backed securities issued by JPMorgan and the financial companies it purchased in 2008, Bear Stearns and Washington Mutual. FHFA filed its lawsuit against JPMorgan and separately sued more than a dozen other leading financial institutions in September 2011. The agency is trying to reclaim billions of dollars in losses sustained by the two mortgage giants, which were rescued by taxpayers at the height of the financial crisis in 2008. The rest of the funds would be split between shoring up the Federal Housing Administration, which has claims against the bank for allegedly defrauding taxpayers on FHA loans; New York state; the U.S. government; and distressed homeowners, who could apply for mortgage assistance. FHA, a government agency inside the Department of Housing and Urban Development that insures loans traditionally made to first-time home buyers and others unable to stump up big down payments, is likely to tap the U.S. Treasury for a bailout as a result of depleted reserves caused by soured loans. JPMorgan has been resisting such a large payment, government officials said. But JPMorgan has an incentive to settle as many government probes as possible by Oct. 11, when the bank reports third-quarter earnings. Already, the bank has cautioned investors that it expects to incur a significant cost due to the various government-driven legal claims it faces. Equity analysts who cover JPMorgan for investors have said the bank’s legal liability could depress its stock price and future earnings. The various government entities also have an incentive to strike a mass settlement rather than file separate cases in court that could take years to resolve, particularly if the current settlement involves reduced payments or lowered loan balances for troubled borrowers. Representatives for the Justice Department, FHFA, JPMorgan, and New York Attorney General Eric Schneiderman declined to comment. JPMorgan faces a litany of accusations of mortgage-related misdeeds, according to its securities filings. U.S. attorneys offices in California and Pennsylvania are investigating the bank’s allegedly misleading sales of mortgage-backed securities, according to securities filings and people familiar with the probes. In one case, federal prosecutors told JPMorgan in May that they had “preliminarily concluded” that the bank violated civil securities laws related to mortgage securities it packaged and sold from 2005 to 2007. A federal criminal investigation related to mortgage securities is pending. Schneiderman last year sued the bank, alleging it misled investors when they purchased securities issued by Bear Stearns. Preet Bharara, the U.S. attorney for the Southern District of

New York, has been probing the bank for possibly defrauding taxpayers on FHA loans, securities filings show. In recent years, federal prosecutors and HUD have struck deals with Bank of America, Citigroup and Deutsche Bank, the German lender, to resolve allegations they defrauded taxpayers on FHA loans. The current round of talks centered on JPMorgan intensified in recent days after federal prosecutors notified the bank they planned to file a civil lawsuit. The talks are being led by the Obama administration’s Residential Mortgage-Backed Securities Working Group, the formal name for the federal and state agencies with a stake in investigating mortgage securities-related wrongdoing. The administration has faced criticism, particularly from federal lawmakers, over the apparent lack of cases it has brought against leading financial institutions for alleged wrongdoing committed in the years leading up to the financial crisis. Defense lawyers that represent big banks have said in recent months that the Justice Department has ramped up its investigations into their clients. LINK TO HUFFINGTON POST http://www.huffingtonpost.com/2013/09/25/jpmorgan-chase-settlementmortgage_n_3991146.html

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JP Morgan Sharholders: Three Years Ago I told You RMBS Settlement Would be Mega Billions
The U.S. government and its regulators want a lot of money from Jamie Dimon’s bank because they think the institutions it owns did some really bad things when selling mortgage backed securities to every tom, dick and harry on The Street. This is a story I’ve done original reporting on for three years now starting at The Atlantic, then DealFlow Media, and have made multiple appearances on RT’s Keiser Report warning their RMBS fraud settlement will be huge. In fact, I told Max Keiser

in early 2011 it would be around $10 billion and then watched traders on the street shake their heads at me because they just couldn’t imagine it. This wasn’t because I had a crystal ball and guessed right, it was because I knew the amount of documented evidence and whistleblowers against JP Morgan / Bear Stearns was so strong that the number would have to appear big to the general public; so our Too Slow To Do Anything regulators could appear like financial crime cops say they got a big number out of JPM. Of course if the SEC, DOJ or NYAG had done something when the mortgage insurers first started to complain about Tom Marano’s mortgage team not buying back faulty loans, like their contract said they would in 2007, just think of all actually bond losses and jobs, and individuals net worth that might not have been wiped out. Now we see my peers in the financial press are just starting to wake up to the fact that JP Morgan is going to have to pay mega billions (like $10 billion plus) to settle fraud claims for the role of Bear Stearns mortgage traders during the housing boom. That’s about two quarters of net profit for JP Morgan. JP Morgan doesn’t want to make this settlement; especially if they have to admit quilt or wrong doing because that could cement more civil fraud settlements by all the investors who bought the bank’s RMBS. According to JPM’s quarterly filings, those investors equal at least $160 billion of private rmbs litigation these days. And while JPM is a very profitable bank making money hand over fist it doesn’t have enough cash to payoff all those private rmbs suits at the dollar amount they could likely legally win if they ever went to trial. Last month we saw JPM settle its first RMBS fraud suit with one of the monolines, Assured Guarantee. This suit, filed by top lawyers at Patterson Belknap, was key in finding over 30 whistleblowers to detail a mafia like level of deceit/cover up and out right stealing from their own damn clients. It also showed that once JP Morgan found out about the really bad stuff Bear was doing they created a plan to : delay contractual payouts agreed upon and just up and change the calculations on mortgage loan defaults/payouts that Bear/EMC had been using so they didn’t have to pay the monolines around $1 billion of rmbs putbacks in 2008. Yep you heard me right. The monoline lawyers at PBWT found buckets of emails from JPM people spelling out this nifty little plan. That’s why a NY State judge, Ramos, allowed JP Morgan to be sued for fraudulent conveyance in the Assured case. Because they flat out knew Bear committed fraud and in 2008 didn’t want to ( or couldn’t afford it) pay it. The Assured settlement was confidential of course but people close to the settlement told me Assured was ‘thrilled with the settlement number’ and it was close to the near $100 million they were suing for. JPM didn’t admit wrong doing in this case but they

sure spoke with their wallet by paying Assured once the monoline had secured most of their claims through beating JPM’s motion to dismiss So now we have the DOJ, NYAG, FHFA wanting a piece of Jamie Dimon indirectly admitting he owes RMBS investors a lot of money. The FHFA has been leaking settlement numbers to Kara Scannell at the FT for a few weeks now. The first number she reported was they were asking JPM for $6bn for the rmbs sold to Fannie and Freddie (the GSEs). Then we watched the DOJ, who always calls the WSJ went they want to get a message out, report the DOJ wanted $3bn and JPM said no way. When we see settlement numbers get reported like this it means the government is desperate to push a bank into a deal. They use press embarrassment and ‘lets scare the shareholders’ to get the bank to settle and my peers blindly print whatever the government tells them. The story these days isn’t the number JP Morgan will pay, but the payout number compared to the legal reserves they have been booking. This is something I was first to highlight in May 2012 and now we see Bloomberg commentator Josh Rosner calling JPM out on the same issue–which is a good start but everyone of my fellow reporters covering this story should be writing about this at the top of their stories. You see JPM’s legal reserves hit their bottom line and their regulatory capital levels so they don’t want to admit they will have to pay this money until the very last minute. But that’s not really fair to shareholders. And on top of all that the OCC, their bank regulator, and the SEC, their securities regulator, have been allowing JP Morgan to under reserved for RMBS lawsuits and putbacks for years now. It’s like the regulator is now part of the scheme to defraud JP Morgan shareholders.

The Justice Department and other investigative agencies are quick to settle for dollars, but fail to investigate thoroughly to determine the real root cause of the financial crisis. These entities fail to bring any real meaty criminal charges to the perpetrators. ---this is an opinion.

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