J.P. Morgan to Pay $153.6 Million to Settle SEC Charges

[kpete]

Source: Wall Street Journal

The SEC said J.P. Morgan Securities will pay $153.6 million to settle charges that the firm misled investors in a mortgage-backed securities transaction “just as the housing market was starting to plummet.”

In shades of the SEC lawsuit last year against Goldman Sachs, the SEC in a news release http://sec.gov/news/press/2011/2011-131.htm said J.P. Morgan set up a $1.1 billion collateralized debt obligation without properly telling investors that a hedge fund helped select assets packed into the CDO, and had bet against more than half those assets.

Click HERE to read the SEC lawsuit against J.P Morgan.
http://sec.gov/litigation/complaints/2011/comp-pr2011-131-jpmorgan.pdf

The company neither admitted nor denied the SEC allegations. J.P Morgan agreed to improve how it reviews and approves mortgage-bond deals.

Read more: http://blogs.wsj.com/deals/2011/06/21/j-p-morgan-to-pay-153-6-million-to-settle-sec-charges/

[closeupready]

1. What a joke.

How painful is that? :eyes:

[madmax]

3. I completely agree a huge joke! grrrr nt

[Nihil]

15. Not even a hint of pain to be felt.

> The company neither admitted nor denied the SEC allegations.

No justice, responsibility for actions, or incentive to behave next time.

Aren't you glad that everything has "changed"?

[kestrel91316]

2. Doesn't that represent about an hour's profits for them??

[DCKit]

6. Thus, the joke.

[drokhole]

4. "Settle charges" = Circumvent the law

I love the way these type of things get framed. It's why I can't stand those fuckers like Frank Luntz. Weasel wording - hell, even plain old branding - go such a long way in framing/misleading public perception/discourse. The article's title should've been "J.P. Morgan to Pay $153.6 Million to Circumvent the Law," because that's what they're really doing. Bet that would've puckered some assholes on Wall Street.

[aquart]

5. This is a joke, right?

[daggahead]

7. A drop in the swimming pool ... n/t

[stockholmer]

8. if people accept this as 'justice served', the globe is so FCUK'd (not that we werent anyway)

indict 'em, dock 'em, try 'em, lock 'em up up for life

Until the global monetary system of fiat currency, compounded debt interest, private control of sovereign nations, etc, is destroyed, there can, and won't be any peace.

[gratuitous]

9. J.P. Morgan set up a $1.1 billion CDO

I'm guessing they skimmed a little sugar off the top for collecting all that sweet, sweet venture capital. Then they managed the fund, for another small fee. Then they placed bets against the fund, making money off the investors' losses. A lot of this money was invested on behalf of working people, helping to fund pensions and the like, while the House of Morgan was grabbing off cash on the front end, the back end and at various stops in the middle.

When it's all said and done, and $1.1 billion has gone where the woodbine twineth (to quote Jay Gould, one of the original Robber Barons), Morgan has made a tidy little sum for itself. A couple of years down the line, the SEC finally dodders over and makes them give back a fraction of their loot and wags a very stern finger in their direction. Meanwhile, the thieves just laugh at the ineffectiveness of it all, and set up for another go-round. They stop only long enough to complain about the exorbitant 15% tax rate on their "earnings," and laugh some more as Republicans scramble to soothe their hurt fee-fees.

[Corruption Winz]

10. "Settle"....

Two things about that word.

1. It doesn't always mean you're guilty. Sometimes, you really just want to settle the issue for fear of backlash even if you're proven innocent. It can be a calculated move.

2. I hate the word. It's as if those affected are fine now. "Oh, thank God. They've SETTLED. Thank goodness, otherwise I'd still be homeless and hungry."

[onethatcares]

11. 153 million on a collection of 1.1 billion

sounds like the cost of doin biznezz to them.

Now just imagine you having the opportunity to improve how you review and approve ripping folks off. Wouldn't it be nice?

[Nihil]

14. I bet it results in a tax offset too! (n/t)

:grr:

[Johnny Harpo]

12. JPMC Probably Used Some Of The Bail Out Money...

[JDPriestly]

13. Not nearly a large enough settlement.

Some folks should be in jail for fraud.

[No Elephants]

16. Travesty.

[Kingofalldems]

17. Kick