Nov 11, 2013
The settlement that JP Morgan reached with the U.S. Justice Department was said to be so large, it rocked all of Wall Street.
The bank is supposed to pay 13 billion dollars to the federal government for defrauding homeowners and investors like pension funds and endowments during the housing bubble. In fact, the bank will be able to deduct the fine from its taxes.
As part of the settlement, JP Morgan is also supposed to write down mortgages and accept short sales by some homeowners who are under water. But JP Morgan has already made it clear that it expects the Federal Deposit Insurance Corporation (FDIC) to pick up most of the tab.
So, U.S. taxpayers will wind up reimbursing JP Morgan for most of the costs of its legal settlement with the Justice Department.
And behind this fake penalty is the real issue: the settlement clears JP Morgan of any wrongdoing, along with everyone associated with the bank, including the bank’s CEO Jamie Dimon and his entire staff, the entire Board of Directors and its major stockholders. It confirms that the U.S. Justice Department won’t seek any prosecutions, won’t send anyone to prison and won’t touch anyone’s fortune – even though everyone knows how deeply guilty the bank and everyone who runs it is, how much they all profited from the housing bubble and housing collapse, and how much suffering and misery they caused from the huge increase in homelessness and unemployment.
The entire charade between the bank and the government confirms once again that the mighty U.S. government, with all its power, is nothing but a tool of the big banks.