Monday, October 21, 2013
How The JP Morgan Settlement With The Government Was Negotiated
The tentative $13 billion settlement between JP Morgan and the government was initiated by a meeting between the JP Morgan CEO and the US Attorney General. This article provides some of the details about the civil lawsuit. JP Morgan is also subject to a criminal lawsuit in California. The criminal lawsuit charges JP Morgan with the sale of mortgage securities to investors which it knew to be at risk. JP Morgan requested that the California lawsuit be dismissed as part of the settlement. The government declined the request. JP Morgan has decided to let the criminal lawsuit go forward. It is very hard to win a fraud suit. The government must prove that JP Morgan intended to defraud the investors who purchased the toxic mortgage securities. It is not easy to determine what went on in the minds of those who sold the toxic securities.
Subscribe to: Post Comments (Atom)
Post a Comment