Hints and tips:
...When I chaired the FDIC during the financial crisis, we sold the failed the mortgage lender Washington Mutual to JPMorgan. It was our only bidder and was prepared to take over WaMu immediately....
...The Bear Stearns and WaMu deals and JPMorgan’s relatively unscathed path through the financial crisis won Dimon lasting respect....
...Similarly, Bank of America thought buying Countrywide Financial in January 2008 for $4bn in stock would give it a chance to become America’s top mortgage lender....
...All the same, says JPMorgan’s retail chief Gordon Smith: “WaMu was a very good acquisition.”...
...The government seized WaMu a few months later and the group lost every cent....
...JPMorgan argued that it should not be held responsible for numerous lawsuits brought against it over the actions of Seattle-based WaMu, which packaged billions of dollars of duff mortgages into securities...
...Government agencies sued BofA for the mortgage-backed securities that Countrywide allegedly dumped on Fannie Mae and Freddie Mac. JPMorgan was charged and fined for fraud alleged against Bear and WaMu....
...Fannie Mae and Freddie Mac, the government-controlled mortgage companies, have previously sued nearly a dozen banks and the British Bankers’ Association for allegedly causing them to suffer hundreds of millions...
...WaMu packaged billions of dollars of bad mortgages into securities and sold them to institutional investors before the crisis....
...JPMorgan bought WaMu during the financial crisis as it came close to collapse....
...after the bank accepted it would not try to claim back part of the costs from the government-managed receivership of WaMu.”...
...However, one person familiar with the matter said that might not stop the bank trying to foist some of the cost on the WaMu receivership managed by the FDIC....
...US regulators are close to presenting the US banking group with a $13bn bill for its alleged mis-selling of mortgage-backed securities....
...BofA has argued that it does not have “successor liability” for Countrywide, in the same way that JPMorgan argued it should not be punished for the actions of WaMu....
...For various alleged financial ‘crimes’ involving the sale of fraudulent mortgages, the nation’s largest bank is slated to fork over $13 billion, admit some culpability and prepare for a barrage of lawsuits...
...This was in reference to JPMorgan’s acquisitions of WaMu and Bear during the crisis, which were encouraged by the US government to prevent their failure....
...He said he still did not believe the bank was responsible for WaMu’s mortgage security exposures....
...As a rough guide, about 80 per cent of losses incurred by investors in JPMorgan’s mortgage-backed securities were actually written by Bear or WaMu, according to filings from the bank....
...The $13bn JPMorgan Chase has agreed to pay to end US government investigations into mortgage bond sales appears just as capricious....
...Negotiations between JPMorgan Chase and US officials to resolve allegations the bank mis-sold mortgage securities in the run-up to the financial crisis are focusing on how credit and blame will be distributed...
...“People within the firm used WaMu to clip his wings,” a friend of Mr Bonderman says....
...specific tranches of the sliced-and-diced securities sold by WaMu....
...In Los Angeles, a borrower named Jose Flores applies for a mortgage but unfortunately a credit check reveals he is dead....
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