JPMorgan whistleblower: Justice still hasn’t been done

by 12 Feb 2015
The whistleblower who brought JPMorgan Chase to its knees and cost the bank a $13 billion settlement doesn’t think the bank has suffered enough.

Alayne Fleischman, who worked as a securities lawyer at JPMorgan between 2006 and 2008, turned over information on the bank’s dealings in shoddy mortgage-backed bonds during the run-up to the financial crisis. Attorney General Eric Holder was noted at the time saying the bank’s conduct, “helped sow the seeds of the mortgage meltdown.”

Rolling Stone revealed her identity as a whistleblower last November.

In a recent interview with Financial News, Fleischman said justice hasn’t been served yet to JPMorgan and other major financial systems that caused the recession. “I’m still hopeful that, with enough public pressure, criminal cases will be brought against the individuals responsible, not just at JPMorgan but also at the other banks that sold fraudulent securities,” she told the media outlet.

She added banks are using their “lawyers, lobbyists and PR groups to protect individuals who should clearly be charged and tried in a court of law.”

“As long as these individuals are shielded from accountability for the damage that they’ve done, then their victims — in many cases the retirement funds of ordinary, hard-working Americans — will be left without justice,” she added.

In late 2013, JPMorgan signed a $13 billion settlement with the government to put to rest claims that it sold shoddy mortgages to investors during the run-up to the financial crisis.
 

COMMENTS

  • by Dominick F Sammarone | 2/12/2015 9:49:16 AM

    You go Girl! You have BIGGER BALLS then 90% of the boys on Wall Street. I smelled the stench of corruption for years. I have done mortgages and sold them on the secondary market. I just knew mathematically that this was a big smoke and mirrors game. I also knew that not only should the mortgages "NOT" be made but I also knew that the poor boob buying into them is stuck with a hot potato. Remember the birthday game hot potato or musical chairs? (That's the game where the loser is an ass without a seat)

    Here we all are looking out the windows of our homes thinking
    A) what the hell is the value of my home?
    B) will my home ever be able to sell?
    C) will the buyer qualify for a mortgage before FNMA & Freddie Mac are "phased out"

    Seems to me that the winners are out at the Hamptons. Who's the boob with the hot potato now?

    Wall Street was a well to go to and get fresh clean water from. It appears someone took the water and then dumped toxic chemicals down the well. I wouldn't invest a nickel on that street after this. It is Really bad press for Wall Street.

    You would think they would want to hang the people who poisoned the well. Thank god for stupid investors.

    It's not What's in, it's who's in, your wallet?

  • by cheryl M | 2/12/2015 12:02:23 PM

    Still hopeful? Well guess what Chase is doing now. I have a client who has been having trouble making online mortgage payments. While in the process of qualifying for a refi. they went to their local branch and find out by the bank VP (really, what's in a title) that their mortgage was in a "payment plan" not knowing what the chase employee was talking about and proceeded to correct their ability to continue making online payments, they were told it was due to their recent participation in the Chase MDL settlement class action suit. They stressed to the Branch VP that they did not participate in any payment plan with Chase and immediately demanded their account be corrected!

    Long story short Chase is altering mortgage account that were previously in mortgage modification or presently in modification to sway their "record keeping" to show the Class Action that they are "Complying with the settlement." NO they are not complying, CHase is merely committing another fraud.

    AND YOUR HOPEFUL? The state AG are not listening as well the CFPB is not either. Not buying it.

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