Sunday's New York Post page one headline about JPMorgan's fine screamed "Uncle Scam" with the sub headline "U.S. Robs Bank of $13B."
Wall Street went into a tizzy this weekend with the news that one of the nation's biggest banks agreed to fork over to the federal government $13 billion in fines related to its mortgage securities business.
The Post quoted bank analyst Dick Bove of Rafferty Capital as saying the deal "is a basic and fundamental attack on capitalism."
"It is possible that the government is taking away the property of the JPMorgan shareholders without the shareholders having committed any crime or having any say in the expropriation of these funds," Bove told the New York Post.
The deal, announced Saturday, settles civil penalties with the U.S. Justice Department, but doesn't stop any potential criminal prosecution. The Federal Housing Finance Agency sued JPMorgan and 17 other banks for faulty mortgage bonds two years ago.
Wall Street insiders were furious about the deal, noting that 80 percent of the mortgages being probed were actually acquired from the failing banks Washington Mutual and Bear Stearns. JPMorgan reportedly took over the risky portfolio at the request of the U.S. government in the wake of the 2008-09 financial meltdown.
“I just think that these banks like JPMorgan are being whacked like a pinata,” hedge-fund manager Doug Kass, told the Post. "Ultimately, the earnings power of banks is being regulated out of them from the [Securities and Exchange Commission], from the Department of Justice."
The settlement deal was sealed this past Friday night in a telephone call between Attorney General Eric Holder and JPMorgan CEO Jamie Dimon.
Politico noted that Dimon was once considered "one of President Barack Obama’s most prominent Wall Street friends." A Democrat and one-time Obama donor, he was also a frequent visitor to the White House and praised by Obama himself as the "one of the smartest bankers we got."
Via: Newsmax
Continue Reading.....
Subscribe to:
Post Comments (Atom)
Popular Posts
-
President Joe Biden is hiding a myriad of information on the more than 75,000 Afghans his administration has brought to the United States ...
-
A Kentucky Chuck E. Cheese appears to have taken the kid-friendly chain’s “no guns” policy too far, refusing to serve a police officer w...
-
Television ads that can be seen on cable news networks promoting petitions to abolish the IRS and defund Obamacare are being used by politi...
-
'It's A Great Opportunity For Me Personally, It's Great Opportunity For Our State' ASBURY PARK, N.J. (CBSNewYork) –...
-
OSKALOOSA, Iowa – President Barack Obama called the latest addition to the GOP ticket, Rep. Paul Ryan, “a good man, a family man” du...
-
“It’s a tax that punishes people that have been diligent over the years and did the right thing,” says Certified Public Accountant Bob K...
-
On Wednesday March 7, 2012 HHS Secretary Kathleen Sebelius went before the Appropriations Subcommittee at a hearing on the new health ...
-
President Obama is tripling the number of Cabinet agencies with gun control law enforcement responsibilities in his new bid to track gun...
-
PASADENA, Calif. – In a show of technological wizardry, the robotic explorer Curiosity blazed through the pink skies of Mars, steering...
No comments:
Post a Comment