The End of Probes Into JPMorgan? Not Even Close

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Nov. 19 (Bloomberg) -- Bloomberg’s “Market Makers” anchor Erik Schatzker breaks down the record $13 billion settlement reached by JPMorgan over the sale of mortgage bonds and what it means for further probes against the company and the banking industry. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

There is a criminal probe the doj is conducting into individuals at jpmorgan being led out of san francisco.

The government continues to investigate jpmorgan over manipulation of the energy markets, hiring practices and china, legal woes far from over.

How do they feel this morning?

Reallylieved.

Aba mimosa.

-- maybe a mimosa.

They had no leverage.

A bank cannot sustain a criminal charge or criminal indictment.

Let's say you are running a company like 3m were some manufacturer in san antonio, but the government sue me.

A bank cannot sustain a criminal indictment.

Jpmorgan, possibly banks down the line, bank of america, citigroup, wells fargo, no leverage.

Do you get $1 billion?

Split the $13 billion?

$4 billion in mortgage relief.

That goes to consumers?

In very.

$4.5 billion goes to the fhfa dir.

Even though they are in conservatorship, that is not going directly to the federal government.

$4.5 billion left to the fed.

On the civil side, how much does this open them up to civil suits from private investors?

All kinds.

There is no provision -- the settlement is basically to make them more vulnerable to this, the way it was worded.

That will come down to the language of the agreement.

There is no question that the general counsel for jpmorgan and dimon himself labored over the language to leave as few openings as possible for those seeking civil -- do you think they were successful?

I have not seen the agreement.

Bill priest, chairman of epic investment partners, is this good news?

They will continue to be under attack.

It has to be a scapegoat for these issues.

Unofficially, the banks are it.

-- unfortunately, that banks are it.

Does this clear the air for banks to be able to focus on building new businesses and generate revenue growth?

I agree with erik, this is not over.

There will continue to be additional suits filed.

Who is next?

Jpmorgan, the reason that jpmorgan faced this action by the doj is mostly because of the acquisition of bear stearns, which was a holding company and washington mutual, which they bought and only require the banking operations of.

Bank of america and bought countrywide and merrill lynch, both holding companies.

Holding companies -- in the case of washington mutual, this was a thorny issue, jpmorgan wanted to use some of the indemnification that is received as part of that deal, if you don't buy the holding company, you are not responsible for all of the company's liabilities.

Jpmorgan lost that battle.

Bank of america cannot even wage that, it bought the holding company.

I want to go back to the motion.

Use a jpmorgan has a sigh of relief.

$30 million, -- $13 billion, sure.

Dimon is dying to get this behind him.

They want to get this done before the end of the year so they can have a claim first quarter, fourth quarter is going to be messy.

Erik schatzker.

Look for his interview with lawrence think at 11:00. waiting for confirmation that the settlement is still something that will be reported.

Coming up on "surveillance," the dow jones broke the 16,000 yesterday.

Is it now headed for 17,000 or 15,000? this is "surveillance," streaming on your tablet, your phone, and bloomberg.com.

Finally, i can buy.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change