The Ongoing New Financial Era Thread

Blue&White
Posts: 422
Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Mon Oct 09, 2017 11:52 am

6 or so years ago JPMC was caught red handed with fraud involving mortgages. Hard to believe, but it happened. As a result, they had to pay a $25B fine. As part of the settlement, the Feds agreed that JPMC could reduce the fine by offering loan forgiveness to customers underwater. For every dollar they gave to consumers their debt to the government would be reduced by that amount.

Seems easy enough, right? So, JPMC did what you would expect them to do - they started to forgive loans. There was only one small catch. They didn't forgive loans they actually held. Instead they forgave loans that had been sold to other companies. And they wrote that money off against what they owed the Feds. And no, I'm not making this up.

This reads like something I could have written because I have the same questions: how is this not criminal fraud and how is no one in jail?

Blue&White
Posts: 422
Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Mon Oct 09, 2017 12:04 pm

Oh, one post script: I don't think it's an accident that all the news focus is on who stood and who kneeled and none of it is one the collective fisting we all took - again.

psu_dad
Posts: 243
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Re: The Ongoing New Financial Era Thread

Postby psu_dad » Mon Oct 09, 2017 12:10 pm

Eric Holder explained this years ago. You can't put these people in jail because they're too important to the economy.

Is this a great country, or what?

Blue&White
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Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Mon Oct 09, 2017 12:16 pm

It's infuriating they will get away with this. Again.

PSUgrower
Posts: 98
Joined: Thu Aug 17, 2017 10:52 am

Re: The Ongoing New Financial Era Thread

Postby PSUgrower » Mon Oct 09, 2017 10:09 pm

I think they should start to fine the actual asshats in charge. Every paycheck they get the government will take 50% of it until the fine is paid off. It is a joke how we treat these buffoons once they screw up. Another punishment could be that someone gets to poop in a bag, light it on fire, and drop it off on their front step every day for the next 25 years. They would be funny

BTW- I have said this before, make the company completely shut down for 3 days but they must still pay all of their employees during that time.

Blue&White
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Joined: Sat Aug 12, 2017 10:01 am

Re: The Ongoing New Financial Era Thread

Postby Blue&White » Mon Oct 09, 2017 11:06 pm

How about we go with the tried and true method of throwing people in jail and see if that works.

Shore Lion
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Joined: Tue Aug 15, 2017 3:31 pm

Re: The Ongoing New Financial Era Thread

Postby Shore Lion » Tue Oct 10, 2017 8:56 am

The sad thing is I'm not even surprised anymore. If anyone does time it will be some mid-level manager and not the folks who actually signed off and orchestrated this fraud.

alicec18
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Joined: Wed Oct 11, 2017 9:40 am

Re: The Ongoing New Financial Era Thread

Postby alicec18 » Wed Oct 11, 2017 9:55 am

psu_dad wrote:I've been reading about it, but the more I read, the more confused I get.

I've read some articles that suggested the LIBOR banks were manipulating the interest rates up to screw the average shmo. I've read other articles that suggested the LIBOR banks were manipulating the interest rates down because there were often circumstances wherein that benefited them. One guy on Forbes said that by keeping interest rates low assurances obsèques, LIBOR effectively created a totally artificial economic prosperity bubble. And he basically predicted an economic Zombie Apocalypse when LIBOR is replaced and more reasonable (i.e., higher) interest rates are established. And that confused me even more because I thought Federal Reserve manipulation was keeping interest rates low in the U.S. on purpose, not LIBOR.

This is beyond my knowledge of economics. And it doesn't help that 10 economists will give you 10 different answers. It makes my hair hurt.

Bah, like all economic operators, is only a facade because the reality is quite different.