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Is the whopping $13-billion JPMorgan settlement fair?
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Oct 21, 2013
Listen 11:35
Is the whopping $13-billion JPMorgan settlement fair?
JPMorgan Chase & Co., the largest bank in the U.S., has tentatively agreed to pay $13 billion to settle Department of Justice allegations that it had sold bad home mortgages to investors in the run-up to the 2008 financial crisis.
People walk by JP Morgan Chase & Company headquarters in New York, August 14, 2013. The US August 14, 2013 charged a pair of former JPMorgan Chase traders with fraud in connection with the 2012 $6.2 billion 'London whale' trading losses. Federal prosecutors filed criminal charges against Javier Martin-Artajo and Julien Grout, alleging the two men kept false records on the trades, committed wire fraud and submitted false US securities filings.
Critics of the deal say the government hasn’t gone far enough to hold individual bankers accountable for the financial meltdown.
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EMMANUEL DUNAND/AFP/Getty Images
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JPMorgan Chase & Co., the largest bank in the U.S., has tentatively agreed to pay $13 billion to settle Department of Justice allegations that it had sold bad home mortgages to investors in the run-up to the 2008 financial crisis.

JPMorgan Chase & Co., the largest bank in the U.S., has tentatively agreed to pay $13 billion to settle Department of Justice allegations that it had sold bad home mortgages to investors in the run-up to the 2008 financial crisis.

It would be the government's highest-profile enforcement action related to the financial meltdown, if the deal is approved.

Still, the government is not getting a lot of love for what could be a record settlement. Defenders of the bank say the settlement is unfair, given JPMorgan’s role before its purchase of Washington Mutual and Bear Stearns in the mortgage finance mess was relatively minor. And other critics of the deal say the government hasn’t gone far enough to hold individual bankers accountable for the financial meltdown.

Guests:

Chris Kotowski, senior analyst at Oppenheimer Equity Research  

Julia Gordon, Director of Finance Policy at the Center for American Progress

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