Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

JPMORGAN CHASE

Delayed Nyse  -  04:00 2017-08-17 pm EDT
90.65 USD   -1.56%
09:13aPiper Sandler Initiates JPMorgan Chase With Overweight Rating, $150 Price Target
MT
09:11aSector Update: Financial Stocks Climb Premarket Thursday
MT
12/07JPMorgan Europe High-Yield Desk Reportedly Took $70 Million Loss
MT
SummaryChartsNewsRatingsCalendarCompanyFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

JPMorgan Chase & Co. : Better Markets sues Justice Department over JPMorgan settlement

02/10/2014 | 02:02pm EST
File photo of JP Morgan Chase's international headquarters on Park Avenue in New York

WASHINGTON (Reuters) - The non-profit group Better Markets filed a lawsuit against the U.S. Justice Department on Monday to block what it called an "unlawful" $13 billion settlement with JPMorgan Chase & Co over bad mortgage loans sold to investors before the financial crisis.

The record settlement with the bank, which was reached in November, does not release JPMorgan from potential criminal liability over the mortgages it packaged into bonds.

But Better Markets said it was still appalled that the settlement gave the bank "blanket civil immunity" for its conduct without sufficient judicial review.

"The Wall Street bailouts were bad enough, but now taxpayers are being forced to accept a secretive backroom deal that may well have been another sweetheart deal," said Dennis Kelleher, the chief executive of Better Markets.

"The Justice Department cannot act as prosecutor, jury and judge and extract $13 billion in exchange for blanket civil immunity to the largest, richest, most politically connected bank on Wall Street."

Better Markets was founded in 2010 to advocate for tough Wall Street reforms.

The lawsuit, which names both the Justice Department and Attorney General Eric Holder, was filed in federal court in Washington.

Better Markets is seeking to have the court prevent the Justice Department from enforcing the settlement until a judge reviews it.

A spokeswoman for the Justice Department could not be immediately reached for comment. A JPMorgan spokeswoman declined to comment on the lawsuit.

Lawmakers and others have criticized the Obama administration for failing to hold Wall Street banks, executives, and other parties accountable for the excesses that resulted in the housing crisis. But other critics accused the Justice Department of a "shakedown" in how it reached the settlement with JPMorgan.

The Justice Department in November negotiated a wide-ranging deal with the largest U.S. bank that included a $2 billion civil penalty to resolve Justice Department claims.

It also included a $4 billion consumer relief package, and a separately negotiated $4 billion settlement with the regulator of mortgage financiers Fannie Mae and Freddie Mac.

Another $1.4 billion of the $13 billion package resolved a lawsuit from the National Credit Union Administration.

The settlement was released to the public, but not filed in federal court.

While the Justice Department enters into non-prosecution agreements on the criminal side without filing them in court, it rarely enters into similar out-of-court settlements over civil violations. The agency also did not release a complaint that it had prepared to file against JPMorgan before it negotiated the deal.

In its complaint, Better Markets alleges the settlement with the bank lacks critical facts that can help justify the deal, such as failing to name any individuals responsible for the wrongdoing, how much damage investors suffered or even "which specific laws were violated."

"No one has any ability to determine if the $13 billion agreement is fair, adequate, reasonable, and in the public interest or if this is a sweetheart deal entered into behind closed doors," the complaint says.

Kelleher, a former attorney at Skadden, Arps, Slate, Meagher & Flom, has become well-known for his critique of both Wall Street banks and regulators who he has often accused of failing to hold the banks accountable for wrongdoing.

Kelleher unveiled the lawsuit during a press conference at the National Press Club on Monday, armed with large posters including one with photos of Holder and JPMorgan Chief Executive Officer Jamie Dimon.

(Reporting by Sarah N. Lynch and Aruna Viswanatha; Editing by Karey Van Hall and Chris Reese)

By Sarah N. Lynch and Aruna Viswanatha


ę Reuters 2014
All news about JPMORGAN CHASE
09:13aPiper Sandler Initiates JPMorgan Chase With Overweight Rating, $150 Price Target
MT
09:11aSector Update: Financial Stocks Climb Premarket Thursday
MT
12/07JPMorgan Europe High-Yield Desk Reportedly Took $70 Million Loss
MT
12/07Recession Warnings Weigh on Exchange-Traded Funds, Stock Futures Premarket Wednesday
MT
12/06No Time For Long Positions on Large-Cap Banks, Morgan Stanley Says
MT
12/06Transcript : JPMorgan Chase & Co. Presents at Goldman Sachs 2022 US Financial..
CI
12/06JPMorgan Chase Upgraded to Overweight From Underweight From Morgan Stanley, Price Targe..
MT
12/02JPMorgan, Bank of America, Citigroup Reportedly Mulling Cut in Banker Bonuses
MT
12/02JPMorgan Chase, Citi, Bank of America Slash Banker Bonuses as Talent War Ends
MT
12/02MarketScreener's World Press Review: December 2, 202..
MS
More news
Analyst Recommendations on JPMORGAN CHASE
More recommendations
Chart JPMORGAN CHASE
Duration : Period :
JPMorgan Chase Technical Analysis Chart | MarketScreener
Full-screen chart
Managers and Directors
James Dimon Director
Daniel E. Pinto President & Chief Operating Officer
Jeremy Barnum Chief Financial Officer & Executive VP
Lori A. Beer Global Chief Information Officer
Rohan Amin Chief Information Security Officer
Sector and Competitors