Government Lies Again! Bank Settlements Contain Tricks That Significantly Reduce The Amount Of The Fine. The Banks Should Be Broken UP!

LA Times: Big Bank Mortgage Settlements Are Bogus

Wednesday, 15 Jan 2014 07:30 AM

By John Morgan

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The hidden truth behind the huge fines the federal government has extracted from banks and Wall Street is that because of credits, tax write-offs and other tricks, the penalties are worth only a portion of what was announced, the Los Angeles Times reported.

In a show of non-partisan skepticism, Sens. Elizabeth Warren, D-Mass., and Tom Coburn, R-Okla., have introduced legislation to force a clear picture of what the fines are really worth.

"The measure reflects a rise in public discontent with settlements that look like major penalties but shrivel into wrist slaps when reality is accounted for," the LA Times reported.



For instance, Warren's office disclosed that the $25 billion National Mortgage Settlement with five major banks in 2012 actually included a $17 billion credit for "routine conduct" by the banks such as following mortgage disclosure rules.

That same deal also permitted banks to escape a $400 million claim from the U.S. Comptroller of the Currency for free by merely promising to comply with the terms of the mortgage settlement, according to the LA Times.

More recently, a $13 billion settlement JPMorgan Chase reached with government regulators in November over its role in the nation's mortgage securities agonies was trumpeted by the Department of Justice as the "largest settlement with a single entity in American history."

But the LA Times said that of the $13 billion, $7 billion was tax deductible, another $4 billion was actually taken from another settlement the bank reached separately with the Federal Housing Finance Agency and $2 billion represented credits the bank will receive to raise lending in low-income communities.

The "Truth in Settlements Act" legislation from Warren and Coburn would require public disclosure of how much of such settlements is tax-deductible, and how much involves credits for routine conduct.

According to the LA Times, the biggest problem with the settlements between the federal government and the banks over financial misconduct is that "they almost never involved indictments of actual human wrongdoers, up to and including the CEOs who oversaw the shenanigans. That's the necessary next step, without which the white collar wrongdoing will just continue."

Since the 2008 economic meltdown, JPMorgan has become so much larger and profitable that it can take the government fines in stride, The New York Times reported. The bank has amassed $28 billion into its legal reserves since the end of 2009 to pay for its problems.

The New York Times noted some experts believe that banks such as JPMorgan have become so large and complex that it would require breaking them up in order to keep "all employees in line."

In 2013, regulators imposed record amounts of fines on both U.S. and European banks for financial wrongdoing, Reuters reported. The total announced by authorities in the United States was $40 billion, and in Europe amounted to $3 billion.



Related Stories:

• NYT: Mortgage Cases Could Cost Major Banks $50 Billion
• Former Prosecutor: JPMorgan Settlement 'Preposterous'

© 2014 Moneynews. All rights reserved.

Russia ViewPoint Of Chase Change Of Rules On Wire Transfers

From The Voice of Russia:

17 October, 13:14  

JP Morgan Chase to limit cash withdrawals, prohibit all outgoing international bank wires, bank officials say

Photo: EPA

In an apparent effort to front-run official government capital controls, JP Morgan Chase has issued letters to all its business account holders notifying them that as of November, 17 the bank will limit all cash transactions (including deposits, withdrawals, and ATM usage) to $50,000 per month, and will prohibit all outgoing international bank wires. JP Morgan Chase later disclaimed, however, that the news that the bank is exerting new capital controls on certain bank accounts are an overreaction to a "streamlining" and "derisking" process.

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers causing speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.Bank officials confirmed Wednesday that the new capital limits apply to all business account holders, the bank will stop processing any outgoing international bank wire, and that any monthly cash transactions in excess of the new $50,000 limit will be subject to penalties and fees.

JP Morgan has been broken down by an enormous fine as it works to clear up the mess created by the London Whale trading scandal.

The bank will pay $100 million to the US Commodity Futures Trading Commission, conceding "reckless" behavior led to the trading debacle that generated about $6 billion in losses.

Last month the investment giant agreed to pay about $920 million in penalties to US and UK regulators to settle charges over the London Whale trades.

In later reports, JP Morgan Chase said news reports circulating on the Internet that the bank is exerting new capital controls on certain bank accounts are an overreaction to a "streamlining" and "derisking" process. 

The bank has sent letters to certain customers saying they will be unable to send and receive domestic and international wire transfers, and "cash activity" will be limited to $50,000 per statement cycle, including cash deposits, night drops, and ATM and cash withdrawals.

"These changes will help us more efficiently manage the risks involved with these types of transactions," one letter reads.

The fear is small and medium-sized businesses could be hurt by the restrictions. But the bank says these were typically mass accounts opened on the Internet, with no bank representative managing them, where domestic or international wire transfers could be sent without bank oversight.

The bank says it is "derisking" these accounts by streamlining the number of customer accounts from, say, six accounts with no bank contact or representative to three accounts with a bank rep managing them. Also the bank said some of the accounts customers had signed up for did not have wire transfer services that customers had wanted, or had limited withdrawal services, but that the bank is instead transferring these customers into new accounts that do provide these services.

Chase said it is not exerting new capital controls on customer accounts.

Voice of Russia, wsj.com, TASS, FOX News

More On Chase And Its Major Change Of Rules

Chase Bank Prepares For Bank Runs – Updated! Limits Cash Withdrawals, Bans International Wire Transfers

Wednesday, October 16, 2013 8:47

0

(Before It's News)

Update: Christopher Greene has just put out the following video report on this unfolding story. The original story, including a copy of the letter from Chase Bank,  is down below this video.

Chase Bank has made the move to limit cash withdrawals as shared in this story fromInfowars . Is this but the latest sign of an economy and society ready to totally collapse? This latest signal is but the most recent one in a series that spell out a much bigger picture. A video report about the rapidly crumbling US economy is also below.

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers from November 17 onwards, prompting speculation that the bank is preparing for a looming financial crisis in the United States.

Numerous business customers with Chase BusinessSelect Checking and Chase BusinessClassic accounts have received letters over the past week informing them that cash activity (both deposits and withdrawals) will be limited to a $50,000 total per statement cycle from November 17 onwards.

 

Chase Bank Will Not Pay Damages To Civilian Who Stopped Robbery. They Got Billions From The Government And Cannot Afford To Pay Medical Bills For Hero

FEARLESS BYSTANDER STOPS ‘ARMED’ BANK ROBBER IN HIS TRACKS, HITS HIM SO HARD HE BROKE HIS HAND

Oct. 18, 2013 5:45pm Becket Adams

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A would-be bank robber in Fullerton, Calif., met his match Tuesday when an infuriated bystander decided to call his bluff and take him down.

Herb Pearce (screen grab)

Herb Pearce, who works as a termite exterminator, told CBS Los Angeles that he was at a Chase Bank branch when the “armed” suspect stormed in, marched up to the counter, and announced the stick up.

“(He said), ‘This is a robbery! This is a stick-up! I want all your money right now!’” said Pearce. “I’m looking at this guy, thinking, ‘Is this guy for real?’”

The suspect, 29-year-old Jacob Williams, turned to Pearce and pointed the “gun,” which was concealed in a bag over the suspect’s hand, directly at the exterminator.

“He had his hand in the plastic bag,” he said.

However, rather that cowering and complying with Williams’ demands, Pearce decided to fight back. He grabbed Williams’ arm and “clocked” him.

“Pow! I clocked him. He went back a little bit, he came at me again, I hit him again,” he said.

Thankfully, Pearce’s decision to call Williams’ bluff didn’t end in tragedy. As it turns out, the suspect was indeed unarmed, according to police.

Williams was arrested the moment police arrived on the scene.

Obviously, law enforcement officials don’t recommend bystanders “clock” supposed bank thieves – but the police who responded to the situation can’t help but be proud of Pearce.

“I have a feeling he would have completed a robbery, so in that effect, Mr. Pearce is a hero in that he stopped a crime,” said Sgt. Jeff Stuart of the Fullerton Police Department.

Pearce broke and fractured his hand in the process of taking down Williams and, unfortunately, he can’t afford insurance. He has no idea how he’ll cover the medical costs.

CBS2’s Stacey Butler reports that Pearce asked the bank to help pay his the medical bills. However, her report adds, he said the bank “refused because their insurance provider wouldn’t cover it.”

A bank spokesperson said Chase is “looking into it,” the CBS report notes.

Nevertheless, and despite the cost, Pearce said he’d do it again.

“I’ll be darned if some junkie is gonna’ come off the street and take my (money). I put too many hours to get that…paycheck. So I’m not gonna’ let him take my money,” said Pearce.