J P Morgan 13 Billion Dollar Fine
Published / Last Updated on 20/10/2013
J P Morgan 13 Billion Dollar Fine.
One of the World's largest banks, J P Morgan faces a World record $13bn fine by USA regulators for mortgage market failings.
JPM is thought to have agreed the deal after intense negotiations with regulators following the packaging of toxic mortgage debt investments that essentially fuelled the property boom up to 2007 and ultimately the collapse and global recession.
USA regulators suggest this does not remove the fact that criminal prosecutions are still likely and JPM is thought to have set aside another $25bn for
Iitigation costs and claims.
Comment
The sheer scale of the financial losses across the globe reflects the fine and more is likely to follow for other banking groups.
We suggest that regulators in the UK should move away from such small fines as a few million pounds, just a few hours trading after all for many major banks, when poor market practice can result in huge consumer and market detriment.