The Banking and Strategy Initiative

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Resolution Weekend: JP Morgan gets to a $13 Bln end point with Eric Holder

Sunday Morning

Sunday Morning (Photo credit: jspaw)

More settlements are likely in California and the Sunday Morning’s figures include only civil resolution but atleast Eric Holder and his deputy Tony West managed to close out their front and center attack on the nation’s biggest and hence most powerful investment banker in mortgages, often equated with Goldman Sachs in the war against Wall Street that has and will keep TBTF in play.

The final call was placed on Friday night and Jami Dimon spoke to the  NYAG ading  $2 Bln to the earlier tentative $11 Bln probably reducing cash fines for giveaways to Holder’s constituents.

Even as Dimon took a back seat and the resolution played out, Holder has probably managed to finnagle cash penalties in the $13 Bln number released to the media that will hit the bank which back checked on $7.2 Bln(post tax) in profits this quarter as this settlement was about to close. The extra $6 Bln would probably take away some of the provisions already made except that the West Coast and the criminal charges to follow include Bears, WAMU And its own RMBS warehoused securities.

The bank paid $100 mln to CFTC and $900 mln to British and three American regulatos for its MTM foibles tried in an experimental risk model by Whale Trader Bruno Iskil and the CIO’s office resultant hide and seek in disclosing the losses and disposing the securities portfolio near completion this quarter.

Sunday Morning

Sunday Morning (Photo credit: Sabina Panayotova)

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