JPMorgan Chase May Be Penalized in Madoff Case
JP Morgan Chase, America’s biggest bank, may face action from federal authorities who suspect that the bank “turned a blind eye” to Bernie Madoff’s massive Ponzi scheme, reports The New York Times. This case comes right after the bank reached a tentative $13 billion settlement with federal prosecutors over the sale of flawed mortgage products. ABC News has confirmed that prosecutors and JPMorgan have held preliminary discussions about a so-called deferred prosecution agreement. This arrangement would suspend criminal charges in exchange for a fine and other concessions.
“We’re not commenting today other than to point people to our many previous statements where we’ve said that “all of our personnel acted in good faith,’” the bank said in a statement today.
JPMorgan’s $31 Billion In Legal Costs Prove It’s Just Too Big
JPMorgan Chase has racked up more than $31 billion in fines, penalties and legal settlements since 2009, according to a rough tally by The Huffington Post — evidence the bank is too big to be safely managed.
Citigroup Said to Offer Servicing on $63 Billion Mortgages
Oct. 24 (Bloomberg) — Citigroup Inc., the third-biggest U.S. bank, is selling mortgage-servicing rights on $63 billion of loans, its largest potential sale of this type since the 2008 financial crisis, according to two people briefed on the offer.
The servicing rights, or MSRs, represent about 21 percent of Citigroup’s total contracts as of midyear, and could be sold in pieces, said the people, who asked not to be identified because the sale is private. More than 80 percent of the loans are performing, according to the people.