Yesterday, fines were announced on two events that profoundly impacted this country, JP Morgan and Credit Suisse were fined a combined $416.9 M for the role they played in mortgage fraud which destroyed trillions of dollars in wealth and helped send the country into recession:
JPMorgan Chase & Co (JPM) and Credit Suisse Group AG (CSGN.VX) will pay a combined $416.9 million to settle U.S. civil charges that they misled investors in the sale of risky mortgage bonds prior to the 2008 financial crisis, regulators said on Friday.
JPMorgan will pay $296.9 million, while Credit Suisse will pay $120 million in a separate case, with the money going to harmed investors, the U.S. Securities and Exchange Commission said.
Both settlements addressed alleged negligence or other wrongdoing in the packaging and sale of risky residential mortgage-backed securities (RMBS), including at the former Bear Stearns Cos which JPMorgan bought in 2008.
The banks settled without admitting wrongdoing, and in separate statements said they were pleased to settle.
..................and BP was fined $4.5 for its role in the Gulf oil spill with civil fines expected to far exceed the $4.5 B fine:
BP on Thursday as the oil giant agreed to plead guilty to a raft of charges in the deadly Gulf of Mexico spill and pay a record $4.5 billion, including the biggest criminal fine in U.S. history.
FYI, the $297 million JP Morgan fine equals 1.5% of its expected earnings next year. Earlier Goldman Sachs was fined $500 million for its role in the mortage fraud scandel or 8% of its profits expected next year. Another way to look at it, combined Goldman Sachs and JP morgan sold $40 billion of CDOs in 2006 and 2007, so their total fines represented 2% of the CDO sales. Anybody believe Goldmam and JPM's profit margin on the CDO sales was less than 2%????
So once again the Wall Street crooks get away with a scam that devastated this country and all they get is a mere slap on the wrist without even having to admit wrongdoing!
So I guess it was the over extended homeowners fault that JPM & GS packaged both high and low risk mortgages in what they termed "low risk tranches" and the banks bought them without failing to do due diligence so their default hedges failed to cover?
Thus GS and JPM agreed to pay $800 M in fines that were completely unwarranted?
While I would expect such nonsense from the racist, dimwit vikesisamoron (escapegrll), the lack of intelligence on this board never fails to surprise me.
"the banks bought them without failing to do due diligence"
Just like it isn't your fault for your failure to do diligence on STX thus your 24/7 365 multi-year whining crying and sniveling about 'dark force evil criminal conspiracies' preventing STX from EVER attaining its rightful valuation. If only you were black!!!!
"Thus GS and JPM agreed to pay $800 M in fines that were completely unwarranted?"
No one pleads guilty. No on goes to jail. Nothing more than an Obama shakedown. And Freddie, Fannie and now the FHA continue on fleecing the American taxpayers of billions.
Continued idiocy of dick_ingester is expected.
"mortgage fraud which destroyed trillions of dollars in wealth"
Where did your imaginary trillions go? The exact same place they came from - thin air!
The fraud was people buying houses they couldn't afford with money they didn't have.
That idiot dumorats promoted this idiot government policy right up to the very day it came crashing down and now hilariously truly believe that the way to solve an indebtedness problem is with more debt.
Folks, our Wall Street #$%$ bag, good old spunky adheres to the saying it ain't illegal unless you get caught.
The only mistake MIlken, Madoff, Rajaratnam, Sanford, Goldman, JPM, Credit Suisse, Barclays, Enron, etc made was being sloppy and getting caught.
BTW, Spunky is still down because Mitt the silver spoon was going to repeal all the security laws and Bronco Obummer has successfully prosecuted 70 Wall Street low lifes with more to come.
BTW, hats off to another classic example today of maximum contrived volatility to fatten the wallets of the chart monkies. Send the Dow down 1000 points one week worried about the fiscal cliff and up 1000 points the next.
Remember this quote from the boss about artifical trading volatility?
"Drive stocks are being priced by the large investment banks for trading volume, and volume requires volatility. So that's why all the big firms are in a different camp than the smaller research firms on their perspective of the drive industry... It is because the big banks are motivated by volatility and the boutique firms aren't... and the research of the big firms reflects doubts. So they create environment that always creates doubt. Why does that work? Because you have traders who love to make that work"
Stephen Luczo, Forbes Inteview 4/12/12