U.S. government to sue JPMorgan in mortgage case: sources

U.S. government to sue JPMorgan in mortgage case: sources

Hello Friends!

It is very clear to me that a “Predatory Banking System” steeped in Fraud and Economic manipulation is strangling and enslaving 99.99% of All peoples on this planet.  Well, for me the question is what to do?  One thing I will do is stand for my Life!  I will also stand for the lives of Every human being on this planet, it really is a question of human dignity for me.  I am Free…  My lust and greed for 3D physical things and comforts will not enslave me via Fear of losing or not having those “things”…

Ed Reidhead


U.S. government to sue JPMorgan in mortgage case: sources

A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar

Mon Sep 23, 2013 5:09pm EDT

(Reuters) – The U.S. Justice Department is preparing to sue JPMorgan Chase & Co over mortgage bonds it sold in the run-up to the financial crisis, a sign the bank’s legal troubles are not yet over.

A lawsuit, first reported by Reuters, could come as early as Tuesday, people familiar with the matter said on Monday.

JPMorgan spokesman Brian Marchiony and Justice Department spokeswoman Adora Andy Jenkins declined to comment.

The bank disclosed in August that federal prosecutors in California were conducting criminal and civil investigations into the bank’s mortgage securities.

In those investigations, government lawyers have concluded that JPMorgan committed civil violations of securities laws in offering mortgage bonds from 2005 to 2007 that were backed by subprime and other risky residential mortgages.

The expected charges come less than one week after the largest U.S. bank paid $1 billion to resolve investigations into its “London Whale” trading scandal and issues surrounding the wrongful billing of credit-card customers.

It was not immediately clear whether the new charges would be civil, criminal or both.

A source familiar with the cases earlier told Reuters that the probes in the Eastern District of California involve mortgage bonds offered by JPMorgan itself and not those by companies it bought during the crisis such as Washington Mutual or Bear Stearns.

The case underscores the limits on JPMorgan chief executive Jamie Dimon’s ability to draw a line under the bank’s mounting regulatory headaches.

Even as the bank has attempted to move past major liability involving its London Whale trades, it continues to face a criminal probe and a lawsuit from the derivatives regulator over the matter.

The expected DOJ case is not the only U.S. probe involving the bank’s mortgage-backed securities business. Prosecutors in Philadelphia and New Jersey are also working on cases, related in part to the bank’s Bear Stearns unit, which it acquired in 2008 at the behest of the government.

New York Attorney General Eric Schneiderman also sued the bank last October over mortgage-backed securities packaged and sold by Bear Stearns.


This newest case comes almost two years after President Barack Obama announced a task force to probe the misconduct that fueled the 2007-2009 financial crisis, and after Attorney General Eric Holder has promised to bring big cases involving the mortgage-backed securities.

The Justice Department has faced withering criticism for bringing few marquee cases against major financial firms or their executives.

In August, the DOJ and the U.S. Securities and Exchange Commission sued Bank of America Corp and accused it of investor fraud in the sale of $850 million of residential mortgage-backed securities.

On Tuesday, Bank of America is also scheduled to go to court to defend a separate U.S. case involving loans the bank’s Countrywide unit sold to Fannie Mae and Freddie Mac.

(Reporting by Aruna Viswanatha in Washington and Emily Flitter and David Henry in New York; Editing by Gary Hill and Andre Grenon)


IMF members: World economy still needs ‘decisive’ action…

IMF members: World economy still needs ‘decisive’ action…

Hello Everyone!

I find this article very interesting…  it looks as though the future of World financial matters is in the balance…  Which way will it go?


IMF members: World economy still needs ‘decisive’ action

Published: April 20, 2013

— Finance ministers from around the world emphasized Saturday that much work remains to reach full recovery, especially in advanced economies.

In a joint statement following meetings Saturday in Washington of the International Monetary Fund’s policy-making committee, the finance ministers said that countries “need to act decisively to nurture a sustainable recovery and restore the resilience of the global economy.”

IMF economists this week underlined the need for the eurozone to bring banks back to full health, especially in harder-hit countries, and to rapidly move toward a full banking union with common oversight. Without a properly functioning banking sector, the smaller businesses that can deliver jobs and economic growth will continue to be starved for investment.

“Financial sector repair and reform remain a priority,” the finance ministers said. “Advanced economies need to balance supporting domestic demand with reforms to tackle structural weaknesses that weigh on growth, while implementing credible fiscal plans.”

The IMF this week pared back its 2013 global growth forecast by 0.2 percentage points to 3.3 percent. Most of that growth is coming from emerging and developing markets, while the eurozone economy is expected to contract this year.

After the meeting, Singaporean Finance Minister Tharman Shanmugaratnam, who chairs the IMF’s policy-setting committee, said that “around the table . . . there was a very strong view that we had to place greater emphasis on structural reforms to create jobs, as well as to boost productivity.”

Such reforms to improve growth vary among economies but often include streamlining labor markets, reducing barriers to starting new businesses and removing market-distorting subsidies.

The closing statement from finance ministers said that “accommodative monetary policy is still needed to help bolster growth but . . . eventual exit from monetary expansion will need to be carefully managed and clearly communicated.”

The rate-setting US Federal Reserve has kept interest rates near zero for more than four years, and additionally is pumping $85 billion into bond markets every month to further stimulate investment, in an unprecedentedly loose monetary policy. Central banks in the eurozone and Japan have taken smaller but similar steps toward highly accommodative monetary policy.

With central banks sailing into uncharted waters, worries have arisen that the new monetary policies could stoke inflation or inflate dangerous bubbles in prices of stocks, real estate or other assets. At the same time, with less than strong growth in those regions, there are concerns that the same economies could wither if central banks stop showering them with cash.

IMF chief Christine Lagarde said that the Washington-based crisis lender will study the “consequences of unconventional monetary policy . .. and what will be the good exit, as opposed to the more unpleasant exit for all members.”

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