• 21 Oct 2013 at 4:09 PM
  • Banks

Jamie Dimon Will Do Anything For JPMorgan

Even prostrate himself before one of Eric Holder’s employees.

On Sept. 24, four hours before the Justice Department was planning to hold a news conference to announce civil charges against the bank over its sale of troubled mortgage investments, Mr. Dimon personally called one of Attorney General Eric H. Holder Jr.’s top lieutenants to reopen settlement talks, people briefed on the talks said. The rare outreach from a Wall Street C.E.O. scuttled the news conference and set in motion weeks of negotiations that have culminated in a tentative $13 billion deal, according to the people briefed on the talks…..

Much of the deal came down to dollars and cents. Mr. Dimon, the people said, signaled during that Sept. 24 call that he was willing to increase JPMorgan’s offer to settle an array of state and federal investigations into the bank’s sale of troubled mortgage securities before the financial crisis. The government, these people said, had already balked at the bank’s two initial offers: $1 billion and $3 billion.

And so that same week, Mr. Dimon traveled to the Justice Department in Washington for a meeting with Mr. Holder that underscored how expensive the healing process had become. At the meeting, the people briefed on the talks said, JPMorgan executives raised the offer to $11 billion, $4 billion of which would serve as relief to struggling homeowners.

U.S. Deal With JPMorgan Followed a Crucial Call [DealBook]

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Comments (4)

  1. Posted by Shaz's beard | October 21, 2013 at 5:02 PM

    5PM and 2 total sentences out of Shazzy. Solid effort.

  2. Posted by VonSloneker | October 21, 2013 at 5:46 PM

    Jamie…Seppuku?

    – Japaneseru Shareholderudeska

  3. Posted by klhoughton | October 21, 2013 at 6:27 PM

    "JPMorgan executives raised the offer to $11 billion, $4 billion of which would serve as relief to struggling homeowners."

    Which is 66 cents on the dollar of what even Edward DeMarco, who never met a mortgage servicer he wasn't willing to try to fellate and felch at the same time, wanted.

    Homeowners with JPMC mortgages: your benchmark has been set.

  4. Posted by Guest | October 21, 2013 at 9:22 PM

    And, just how does $4 billion to homeowners make sense in settling charges that largely have to do with disclosures to buyers of securities? Other than, of course, scoring political points for the administration.