ChartProphet submit:The JP Morgan (JPM) trading blunder could result in a $100 billion loss, a contagion of its massive portfolio, and even the wipeout of its entire asset base. Even worse, these extremely risky and potentially-illegal actions on behalf of the CIO office and the "London Whale" could be the unexpected "shock" that breaks the market, derails the Fed's huge monetary stimulus, and sends us back into a global recession.
JPMorgan Chase & Co. said Friday it has reached a $4.5 billion settlement with investors over mortgage-backed securities. The settlement covers 21 major institutional investors. The mortgage-backed securities were issued byJPMorgan and Bear Stearns between 2005 and 2008. New York-based JPMorgan acquired the failing investment bank Bear Stearns in March 2008. The deal is the latest in a series of legal settlements over JPMorgan’s sales of mortgage-backed securities in the years preceding the financial crisis.
The preliminary US$13-billion deal set by JPMorgan Chase & Co CEO Jamie Dimon and U.S. Attorney General Eric Holder has hit a stumbling block, a person familiar with the talks said on Tuesday.
In a draft settlement circulated late Sunday, JPMorgan sought a provision that effectively shut down any criminal inquires into the bank’s mortgage bond business apart from an investigation from California prosecutors the bank has already disclosed, the person said.