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JPMorgan Chase's acquisitions of Bear Stearns and Washington Mutual during the meltdown were once seen as bargains and more recently second-guessed in light of the bank's $13 billion mortgage settlement. The pain will pay off in the long run, experts say.
October 23 -
JPMorgan Chase's record $13 billion settlement has significant implications for the financial industry, but they may not be what casual observers expect. Following is a guide to the key takeaways from the deal.
October 20 -
The various orders, fines and acknowledgements of guilt made by JPMorgan Chase on Thursday over the London Whale and other issues will have enormous implications for the rest of the industry. Here's why.
September 19
Nothing about JPMorgan Chase's $13 billion mortgage-related settlement with the government is settled in the court of public opinion.
The commentary following news of the fines ranged from outrage over unfair treatment of JPMorgan (JPM) and its chairman and chief executive, Jamie Dimon, to outrage over how the deal failed to punish the bank enough. There was also satirical outrage over all the outrage.
One school of thought says Dimon and the bank are being unjustly scapegoated, partly because many of the penalties are for alleged misdeeds at Washington Mutual and Bear Stearns that occurred before JPMorgan Chase acquired them in 2008.
"He's not getting a fair shake," Maurice "Hank" Greenberg, former AIG head and current C.V. Starr & Co. chief, said of Dimon
The Wall Street Journal's editorial page
The Journal said the deal shows "how government has used the crisis to exert political control over even the most powerful private financial companies."
Then there are the pundits who argue that monetary fines do not take the place of holding financiers more directly responsible for the crisis.
"You can't send a bank to jail, can you? No, but you could place it under court supervision and empower a federal judge to order and supervise internal reforms in the megabank, perhaps even downsizing," William Greider
The New Yorker's John Cassidy
"Instead, the corporation and its stockholders pay the price," Cassidy wrote. "Certainly, that's better than having no accountability at all. After this latest settlement, nobody could suggest that the Justice Department has gone easy on JPMorgan in a monetary sense. But it is people, not corporate abstractions, that break the law, and it is the people at the very top of the corporations who set the rules and the tone for everybody else to follow."
Others chose to criticize the criticism of the deal.
Comedy Central's The Daily Show
"It's a 'shakedown-witch hunt-scalping-jihad!'" Stewart said, adding that what he saw in the settlement was "a mutually negotiated compensatory agreement for outstanding liabilities related to some shady business dealings."
Interviewed on CNBC by Maria Bartiromo, former House Financial Services Committee Chairman Barney Frank
"There were no witches," he said, adding that measuring JPMorgan Chase's culpability is complicated. "I agree that they should have been penalized for Washington Mutual. I think they were unfairly penalized for Bear Stearns," he said.
When American Banker's website