U.S. Attorney General Meets with JPMorgan Chief Dimon

JPMorgan Mortgage Bonds
Manuel Balce Ceneta/APJPMorgan Chase CEO James Dimon, right, arrives at the Department of Justice in Washington on Thursday reportedly to talk with Attorney General Eric Holder.
By PETE YOST

WASHINGTON -- JPMorgan chief executive Jamie Dimon met Thursday with Attorney General Eric Holder about an investigation into the company's handling of mortgage-backed securities in the run-up to the recession.

A person familiar with the matter said Dimon was at the department to meet with Holder. The person wasn't authorized to speak on the record about the matter and spoke on condition of anonymity.

An $11 billion national settlement is under review to resolve claims against JPMorgan (JPM), according to a government official familiar with ongoing negotiations among bank, federal and New York state officials.

As he walked into the Justice Department on Thursday, Dimon declined to answer when asked about the state of the discussions.

The Department of Justice is taking the lead on the settlement, which would include $7 billion in cash and $4 billion in consumer relief, said the official, who spoke on condition of anonymity because a settlement hasn't been reached, and the official wasn't authorized to discuss it publicly.

The government has continued investigating JPMorgan over mortgage-backed securities, which lost value after a bubble in the housing market burst and helped spur the financial crisis.

In January 2012, a task force of federal and state law enforcement officials was established to pursue wrongdoing with regard to mortgage securities.

In other cases, the Justice Department last month accused Bank of America (BAC) of civil fraud in failing to disclose risks and misleading investors in its sale of $850 million in mortgage bonds in 2008. The Securities and Exchange Commission filed a related lawsuit. The government estimates that investors lost more than $100 million on the deal. Bank of America is disputing the allegations.

Last week, JPMorgan agreed to pay $920 million and admitted that it failed to oversee trading that led to a $6 billion loss last year. That combined amount, in settlements with three U.S. regulators and a British one, is one of the largest fines ever levied against a financial institution.

JPMorgan came through the financial crisis in better shape than most of its rivals, and CEO Dimon had charmed lawmakers and commanded the attention of regulators in Washington.

A number of big banks, including JPMorgan, Goldman Sachs (GS) and Citigroup (C), previously have been accused of abuses in sales of securities linked to mortgages in the run-up to the crisis. Together they have paid hundreds of millions of dollars in penalties to settle civil charges brought by the SEC, which accused them of deceiving investors about the quality of the bonds they sold.

JPMorgan settled SEC charges in June 2011 by agreeing to pay $153.6 million and reached another such agreement for $296.9 million in November.


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theycallmeroy3

Its doesn't take a rocket scientist to figure out how Dimon feels. Just look at the picture above and pay close intention to his hands. He's about to projectile vomit. Would it be too much to ask the person who spoke anonymously and was unauthorized to speak publicly, to call me first with inside information? I'll answer on the first ring.

September 26 2013 at 4:09 PM Report abuse +1 rate up rate down Reply
1 reply to theycallmeroy3's comment
theycallmeroy3

Now I can't spell. That's just great.

September 26 2013 at 4:12 PM Report abuse rate up rate down Reply
1 reply to theycallmeroy3's comment
theycallmeroy3

But call me anyway.

September 26 2013 at 4:12 PM Report abuse rate up rate down
onovaline90

They need to settle scores.

September 26 2013 at 4:05 PM Report abuse +1 rate up rate down Reply
lorrsil

Can anyone tell me if the issue with a JP Morgan Chase Bank Branch Mgr. or Ast. Mgr. at the 8928 E R L Thornton Fwy Ste 100, Dallas, Tx 75228 branch who used that branch bank facility address to register their personal corporation (on or about 18 Aug 2011 through on or about 15 July 2013), along with \"working\" their corporation during banking hours, and sold their corporate \'official merchandise\' in the name of USO and others for over 2 years and then never sent any monies, citing that the monies where/are now being used to cover a list of business expenses (which by the way are showing as donated) been resolved according to FDIC Standards of protocol & procedures?

September 26 2013 at 3:45 PM Report abuse +1 rate up rate down Reply
gop4ever3

A lot less regulation would go a long way in stopping these dirty dealings on wall st. All these needless regulations are hampering profits for shareholders and need to stop. Let wall st. police itself they will do the right thing.

September 26 2013 at 12:56 PM Report abuse -4 rate up rate down Reply