Tags: JPMorgan | settlement | dirty | politics

WSJ: JPMorgan Chase Settlement Represents Dirty Politics

By    |   Monday, 21 Oct 2013 06:45 PM

The government’s crusade against JPMorgan Chase, which has produced a $13 billion tentative settlement over the bank’s sale of mortgage securities, boils down to unfair politics, according to a Wall Street Journal editorial.

It says most of those securities were issued before the 2008 financial crisis, and many came from Bear Stearns and Washington Mutual.

JPMorgan hurriedly purchased both of those troubled institutions during the crisis at the government’s request, as authorities sought to prevent a financial meltdown.

Editor’s Note: New Video: Obama Plans to Redistribute Seniors’ Wealth

“So first the feds asked the bank to do the country a favor without giving it a chance for proper due diligence,” the editorial says.

“But five years later the feds are punishing the bank for having done them the favor. . . . Where is the justice in such ex post facto punishment?”

True justice would “require arresting [former Rep.] Barney Frank, D-Mass., and those in Congress who blocked the reform of Fannie [Mae] and Freddie [Mac], plus the Federal Reserve governors who created so much easy credit,” the editorial says.

“The lesson is how government has used the crisis to exert political control over even the most powerful private financial companies.”

Some experts say the settlement at least represents progress in JPMorgan’s efforts to end its legal woes.

“It looks like they are gradually becoming able to put the past and the crisis behind them,” Craig Pirrong, professor of finance at the University of Houston’s business school, told Bloomberg. “It’s an expensive history lesson, and they are not out of the woods yet.”

Editor’s Note: New Video: Obama Plans to Redistribute Seniors’ Wealth

Related Stories:

US 'Robbed' JPMorgan, Payback for Criticism of Obama

JPMorgan's $13 Billion Accord Wouldn't Deter Some Investors



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The government's crusade against JPMorgan Chase, which has produced a $13 billion tentative settlement over the bank's sale of mortgage securities, boils down to unfair politics, according to a Wall Street Journal editorial.
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Monday, 21 Oct 2013 06:45 PM
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