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Special Investigation: How America’s Biggest Bank Paid Its Fine for the 2008 Mortgage Crisis—With Phony Mortgages!

October 18, 2017

By David Dayen : thenation – excerpt

Alleged fraud put JPMorgan Chase hundreds of millions of dollars ahead; ordinary homeowners, not so much.

David Dayen posts a powerful cover-story investigation in The Nation detailing a blistering NY lawsuit that presents evidence Chairman and CEO Jamie Dimon knowingly implemented a grand scam on the US Government to pay off the government-mandated settlement for JPMorgan’s fraud that helped trigger the 2008 financial crash. As part of the National Mortgage Settlement, JPMorgan Chase claimed credit for forgiving the mortgages of tens of thousands of homeowners. The scam? Years earlier JP Morgan had sold many of those toxic mortgage properties — often for pennies on the dollar — to third party investors. [read more]…

You know the old joke: How do you make a killing on Wall Street and never risk a loss? Easy—use other people’s money. Jamie Dimon and his underlings at JPMorgan Chase have perfected this dark art at America’s largest bank, which boasts a balance sheet one-eighth the size of the entire US economy.

JPMorgan’s share of the settlement was $5.3 billion, but only $1.1 billion had to be paid in cash; the other $4.2 billion was to come in the form of financial relief for homeowners in danger of losing their homes to foreclosure. The settlement called for JPMorgan to reduce the amounts owed, modify the loan terms, and take other steps to help distressed Americans keep their homes. A separate 2013 settlement against the bank for deceiving mortgage investors included another $4 billion in consumer relief...(more)

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