This week fines were announced for two events that profoundly impacted this country.
JP Morgan and Credit Suisse will pay a combined $416.9 million fine to settle U.S. civil charges that they misled investors in the sale of risky mortgage bonds prior to the 2008 financial crisis which destroyed trillions of dollars in wealth and helped send this country into recession.
JP Morgan will pay $296.9 million, while Credit Suisse was fined $120 million in a separate case, with the money going to harmed investors, according to the U.S. Securities and Exchange Commission.
Both settlements addressed alleged negligence or other wrongdoing in the packaging and sale of risky mortgage backed securities (RMBSs).
The banks settled without admitting wrongdoing and in separate statements said they were pleased to settle.
Meanwhile, BP was fined $4.5 billion for its role in the tragic Gulf oil spill with related civil fines expected to far exceed the criminal fine.
FYI, the $297 million fine JP Morgan paid equals just 1.5% of its expected earnings next year. Earlier, Goldman Sachs had agreed to a $550 million fine for its role in the mortgage fraud scandel. This fine equals 8% of Goldman's projected earnings for next year. Another way to look at it is that, combined, JP Morgan and Goldman sold $40 billion in mortgage-backed securities in 2006 and 2007, so their combined fines represented just 2.1% of the mortgage-backed security sales.
Anyone believe Goldman and JP Morgan's profit margin on the sale of these securities was less than 2.1%????
So once again the Wall Street Crooks get way with a scam that devastated this country and all they receive is a mere wrist slap without even admitting wrongdoing!
America, take back your country from the Wall Street crooks!