The mammoth $13 billion settlement between JPMorgan Chase and the government over mortgages is official. Here's the statement from Eric Schneiderman's office: A.G. SCHNEIDERMAN-LED STATE & FEDERAL WORKING GROUP ANNOUNCES $13 BILLION SETTLEMENT WITH JPMORGAN CHASE Settlement Includes An Expected $1 Billion For New York
Of the $13 billion that JP Morgan will pay to settle mortgage fraud charges, $4 billion will go to distressed homeowners. More specifically, $1.5 billion will go specifically to JPM, Washington Mutual, or Bear Sterns borrowers that are under water — the value of their homes is less than that of their mortgages.
Bank of America Corp (BAC) may pay the Department of Justice more than $12 billion to settle civil inquiries related to the bank’s handling of sub-prime mortgages, which is widely held to have contributed to the 2008 financial crisis. The new settlement that BofA is negotiating with the Justice Department will take the total amount in settlements by the bank related to its pre-crisis operations to at least $18 billion.
JPMorgan agreed to pay a record $13 billion following a probe of its mortgage operation, Washington Mutual bad loans, and mass waivers on misrepresented products.
Specifically, JPMorgan knowingly bundled toxic loans into packages sold to unsuspecting investors.
But all's well that ends well.
JPMorgan was assessed a $13 billion fine but apparently did nothing wrong. As an added bonus, $7 billion of that $13 billion settlement is tax deductible.
Inquiring minds are reading the complete text of President Obama's State of the Union Address to see what distortions, lies, and hypocrisy it contains.
I found a nice Orwellian set of paragraphs smack in the middle of his speech.
And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.