“A Washington activist group has sued to derail the Justice Department’s record-setting $13 billion settlement with JPMorgan, laying out a compelling philosophical case against such privately negotiated deals but failing to make a legal argument that a judge will buy.”
“The lawsuit filed yesterday in federal court in Washington by Better Markets reads like a position paper, accusing Attorney General Eric Holder of negotiating a “contract” with JPMorgan that allowed the bank to keep out of public view the details of how it allegedly undermined financial markets with fraudulent mortgage-backed securities.”
“‘At a critical juncture, with the DOJ just hours away from filing a lawsuit, JP Morgan Chase ’s CEO directly and personally called the cellphone of the third highest ranking official at the DOJ, who reportedly `recognized’ the incoming phone number of the CEO, who then offered billions of dollars more to prevent the filing of the lawsuit. This very well- timed call to the DOJ official’s cellphone was successful: The DOJ called off the filing of the lawsuit later that day; face-to-face negotiations between the Attorney General and the CEO commenced a day later; JP Morgan Chase began offering billions of dollars more to prevent the filing of any lawsuit; and the $13 Billion Agreement was reached and finalized, ensuring that no lawsuit would be filed and no meaningful disclosure of JP Morgan Chase’s vast illegal conduct would ever occur.’”
Read full Forbes article here.