Tuesday, July 30, 2013

JPMorgan Looks to Pay to Settle U.S. Inquiries

JPMorgan Chase is pulling out its checkbook to help mend frayed relationships with the government.

But its new and conciliatory approach — a departure for the bank and its leader, Jamie Dimon, who generally has taken a hard line with the authorities — is yielding mixed results. Government officials, stung by the bank’s past displays of hubris, may drive up the price of settlements or resist the overtures altogether.

The hefty payouts started on Tuesday when JPMorgan struck a $410 million settlement with the nation’s top energy regulator, which had accused the bank of devising “manipulative schemes” to transform “money-losing power plants into powerful profit centers.” The agreement was a record fine for the Federal Energy Regulatory Commission, whose most recent settlement with a big bank totaled only $1.6 million.
Read the rest here.

Too big to fail and too big to jail. Banks are the enemy.

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