JPMorgan has tentatively agreed to pay the Department of Justice a record $13bn settlement to resolve several civil probes relating to residential mortgage-backed securities — a costly deal that still doesn’t protect the bank against additional criminal prosecutions.
'This is a basic and fundamental attack on capitalism', declared Dick Bove, an influential bank analyst at Rafferty Capital.
'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'.
Under the settlement, JPMorgan must continue to cooperate with federal investigators probing the banking giant’s issuance of mortgage-backed securities from 2005 to 2007, according to sources.
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