Chase tentatively agrees to pay US govt $13 billion in fines

From Bloomberg | October 20, 2013

JP Morgan Chase agreed to an unprecedented $13 billion in fines for allegedly being engaged in selling toxic mortgage securities during the 2008 financial crisis.  It was raised from $11 billion.   In the meantime, the criminal liability shall remain unresolved.

This is rather difficult for JP Morgan.   The alleged wrongdoing are from Bear Stearns which JP agreed to acquire during the financial crisis to stabilize the financial system (the closure of Bear Stearns, a too big to fail financial institution would have grave consequences to the financial market).  Talk about good intentions...

JP Morgan President Jaime Dimon personally discussed the deal with US Attorney General  Eric Holder.

The fine would be 1/2 of more than $21.2 billion that JP Morgan Chase earned last year..  Only 7 companies earned more than $13 billion in 2012 according to data compiled by Bloomberg.

The fine has no relation to withdrawal and wire transfer limit being mentioned at Info.wars?

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US government sues rating agency over pre crisis Mortgage Ratings

Ad Majorem.....Wealth Builders

From ABC News | February 5, 2013 by Daniel Wagner and Christina Rexrode AP business writers

The US government is suing S & P in California courts over high ratings on mortgage bonds that contributed to the financial crisis.  The civil claims $5 billion in damages.

McGraw Hill which owns the rating agency claims the suit is meritless;  claiming that hindsight can not be used as basis for the lawsuit.

However, the US Attoney General Eric Holder says that this is the first major step towards punishing those who contributed to the worst financial crisis in history.  The Department of Justice before was criticized for not acting decisively on those who contributed to the crisis.

The claim for damages is several times bigger than the annual revenues of the rating agency and as large as that of the mother company, McGraw Hill.

The loss to the economy is more than $5 billion.

Several states are expected to join the fray:   Connecticut, Delaware, District of Columbia, Iowa, Illinois, Mississipi and District of Columbia  California has all ready filed a lawsuit in California Superior Court in San Francisco.

Can S & P get of this lawsuit intact?

Can they be blamed for the crisis?