Bank Fraud Settlements Led To More Fraud

By on October 11, 2017

October 11, 2017

JPMorgan Chase gamed the 2012 mortgage settlement that gave major banks a pass on “robosigning,” and turned what was supposed to be an $8.2 billion hit into a profit of hundreds of millions, according to reporter David Dayen. He alleges that JPMorgan ran “an elaborate shell game” with mortgage relief by using mortgages it had already sold as credit towards its relief total. An article in The Week magazine quotes Dayen extensively and calls the roll of settlements reached by the Obama administration’s DOJ after the 2008 financial crisis. They were almost all “no admit, no deny” deferred prosecution agreements, in which prosecutors didn’t have to press complicated cases, gigantic banks paid a nominal fee and swore to make changes to fix the problem, a promise which was often violated instantaneously.
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The Week

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