The U.S. government and its regulators want a lot of money from Jamie Dimon’s bank because they think the institutions it owns did some really bad things when selling mortgage backed securities to every tom, dick and harry on The Street. This is a story I’ve done original reporting on for three years now starting at The Atlantic, then DealFlow Media, and have made multiple appearances on RT’s Keiser Report warning their RMBS fraud settlement will be huge. In fact, I told Max Keiser in early 2011 it would be around $10 billion and then watched traders on the street shake their heads at me because they just couldn’t imagine it.
This wasn’t because I had a crystal ball and guessed right, it was because I knew the amount of documented evidence and whistleblowers against JP Morgan / Bear Stearns was so strong that the number would have to appear big to the general public; so our Too Slow To Do Anything regulators could appear like financial crime cops say they got a big number out of JPM. Of course if the SEC, DOJ or NYAG had done something when the mortgage insurers first started to complain about Tom Marano’s mortgage team not buying back faulty loans, like their contract said they would in 2007, just think of all actually bond losses and jobs, and individuals net worth that might not have been wiped out.