Tags: jpmorgan | dimon | obama | settlement | robbed | bank

US 'Robbed' JPMorgan, Payback for Criticism of Obama

Image: US 'Robbed' JPMorgan, Payback for Criticism of Obama

Sunday, 20 Oct 2013 08:42 PM

Sunday's New York Post page one headline about JPMorgan's fine screamed "Uncle Scam" with the sub headline "U.S. Robs Bank of $13B."

Wall Street went into a tizzy this weekend with the news that one of the nation's biggest banks agreed to fork over to the federal government $13 billion in fines related to its mortgage securities business.

New Medicare Warning: Obamacare Rule Changes Coming

The Post quoted bank analyst Dick Bove of Rafferty Capital as saying the deal "is a basic and fundamental attack on capitalism."

"It is possible that the government is taking away the property of the JPMorgan shareholders without the shareholders having committed any crime or having any say in the expropriation of these funds," Bove told the New York Post.

The deal, announced Saturday, settles civil penalties with the U.S. Justice Department, but doesn't stop any potential criminal prosecution. The Federal Housing Finance Agency sued JPMorgan and 17 other banks for faulty mortgage bonds two years ago.

Wall Street insiders were furious about the deal, noting that 80 percent of the mortgages being probed were actually acquired from the failing banks Washington Mutual and Bear Stearns. JPMorgan reportedly took over the risky portfolio at the request of the U.S. government in the wake of the 2008-09 financial meltdown.

“I just think that these banks like JPMorgan are being whacked like a pinata,” hedge-fund manager Doug Kass, told the Post. "Ultimately, the earnings power of banks is being regulated out of them from the [Securities and Exchange Commission], from the Department of Justice."

The settlement deal was sealed this past Friday night in a telephone call between Attorney General Eric Holder and JPMorgan CEO Jamie Dimon.

Politico noted that Dimon was once considered "one of President Barack Obama’s most prominent Wall Street friends." A Democrat and one-time Obama donor, he was also a frequent visitor to the White House and praised by Obama himself as the "one of the smartest bankers we got."

But that relationship went into meltdown as Dimon began criticizing Obama's handling of the economy in the run-up to the 2012 election.

New Medicare Warning: Obamacare Rule Changes Coming

Last year Dimon told Fortune magazine that “we have the royal straight flush,” suggesting that “the debt-ceiling crisis, the failure to do Simpson-Bowles, [and] what I consider the constant attack on business” by the Obama administration had stymied the recovery.

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Senate GOP Debates What to Do Next With Iran Sanctions Bill

Friday, 30 Jan 2015 18:24 PM

Now that an Iran economic sanctions bill has made it out of committee, Senate Republicans are debating how to proceed. . . .

Shocking French Video Aims to Stop ISIS Seduction of Young People

Friday, 30 Jan 2015 18:22 PM

The French government has released a shocking video filled with brutal scenes of death in Syria in an attempt to convinc . . .

Fox Analyst: In Every Negotiation, Obama 'Has Come Up Short'

Friday, 30 Jan 2015 18:00 PM

President Barack Obama is a "really lousy negotiator" and needs to figure out how to fix that fast, Fox News Channel Nat . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved