Email
Password
Remember meForgot password?
    Log in with Twitter

article imageOp-Ed: J.P. Morgan 'Shakedown' for bad loans

By Robert Weller     Oct 21, 2013 in Politics
New York - J.P. Morgan has negotiated a $13 billion payoff for loans it made that contributed to the economic collapse in 2008. Conservatives call it an attack on capitalism.
The Rupert Murdoch-owned Wall Street Journal called the payoff a “shakedown,” without explaining how all the lawyers money could buy had to settle for a deal like this.
The Washington Post said of the lending practices: “a lot of the loans that the banks sold were bad. Many were subprime, meaning to people with weak credit, small down payments, or both. Many more were "Alt-A", a category of loan quality a little better than subprime but worse than prime loans.”
The Tea Party and Ted Cruz do not seek to shut the government down for not having stopped this practice before it devastated the economy. Could it be because it happened under a Republican president.
One of the loans investigated turned out to have been made to O.J. Simpson, who was facing a $33.5 million judgment in favor of the family of his murdered ex-wife and friend Ron Goldman.
The New York Post, also owned by Murdoch, had a headline saying: “US ‘robs’ $13B from venerable bank.” The New York Times reported the paper quoted Dick Bove, a bank analyst at Rafferty Capital, as saying, “This is a basic and fundamental attack on capitalism.”
Last month an $11 billion settlement had been discussed, but apparently was not enough for the government, Bloomberg said.
This was not peanuts for J.P. Morgan. The Post said it amounted to five months of income for the company.
So far, no top executive at a large bank has been convicted of criminal charges, the Times said. The Journal said that means “the left wants perp walks, if not heads on pikes.”
According to the Journal, “the 2008 crisis wasn't the result of bank fraud, despite liberal mythologizing. It was a classic credit panic caused by bad government policy coinciding with the rational exuberance of bankers who were responding to the incentives for excessive risk-taking that government created.
A column in Bloomberg put a new spin on “too big to fail.” It said J.P. Morgan is “too big to whine” about any perceived unfair punishment.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com
More about jp morgan, Greek banks, Murdoch, 2008 recession, Oj simpson
More news from