In recent story published in Rolling Stone, Taibbi detailed how a
former JP Morgan employee Alayne Fleischmann helped the Justice
Department in its investigation against the bank. Eventually, a
$9 billion settlement was reached. However, that agreement did
not require the bank to admit guilt for fraud – and it all came
about to keep the information Fleischmann divulged from
surfacing.
Speaking with Thom Hartmann on RT’s ‘The Big Picture’, Taibbi said that Fleischmann, a deal manager at the company, criticized JP Morgan’s banking practices when she realized that the normal procedures on due diligence and compliance on loans were not being handled in the usual way. These loans were to be packed into securities and re-sold to investors (pension funds, hedge funds, insurance companies), but the due diligence department wasn’t forthcoming with information, and deal managers were told not to send emails with their inquiries.
As a result of JP Morgan’s decision to sell these loans despite knowing they were defective, Taibbi said Americans suffered dramatically.
Read more: JP Morgan Chase cost US taxpayers millions, had them pay for settlement - Matt Taibbi — RT USA
Speaking with Thom Hartmann on RT’s ‘The Big Picture’, Taibbi said that Fleischmann, a deal manager at the company, criticized JP Morgan’s banking practices when she realized that the normal procedures on due diligence and compliance on loans were not being handled in the usual way. These loans were to be packed into securities and re-sold to investors (pension funds, hedge funds, insurance companies), but the due diligence department wasn’t forthcoming with information, and deal managers were told not to send emails with their inquiries.
As a result of JP Morgan’s decision to sell these loans despite knowing they were defective, Taibbi said Americans suffered dramatically.
Read more: JP Morgan Chase cost US taxpayers millions, had them pay for settlement - Matt Taibbi — RT USA
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