News blog DigitalOlympus.com has commented on recent reuters.com news article concerning JPMorgan Chase & Co CEO Jamie Dimon’s inability to stop the criminal probe against his bank, and highlighted this latest development as an example of the U.S. government maintaining a strong position against fraud.
Chicago, IL -- (SBWIRE) -- 10/24/2013 -- On October 22, DigitalOlympus.com commented on recent news story by Aruna Viswanatha, Karen Freifeld and David Henry published on reuters.com regarding JPMorgan Chase & Co CEO Jamie Dimon’s futile pleas to the U.S. Department of Justice (DOJ). Dimon implored and complained to the DOJ but failed to persuade the government to stop the criminal investigations of mortgage fraud at the bank.
The reuters.com report further indicated that, “While JPMorgan was not about to admit wrongdoing, Dimon suspected that ending the criminal probe was a long shot and the bank was not interested in holding up all the other settlements to wait for that.” The news piece also noted that civil cases require a lower burden of proof, and can usually be wrapped up faster than parallel criminal proceedings.
Citing people familiar with the matter, the reuters.com news piece reported that prosecutors are not yet done with the investigation; apparently, they are still trying to determine whether JPMorgan misrepresented the quality of the mortgages or not. Dimon has reached a tentative $13 billion deal with the DOJ to settle investigations into alleged bad mortgage bonds that JPMorgan sold to investors before the financial crisis.
In a statement following the report, DigitalOlympus.com main researcher Josh Cole said that other firms can take a cue from the challenges JPMorgan is facing. According to him, all companies should always hire experts in due diligence investigations to avert this kind of situations.
“Even after these issues are solved, it’s possible that the problems of the criminal investigation may still persist,” said a DigitalOlympus.com spokesperson. “At this point it’s very likely that the bank will have to plead guilty to something, I’d recommend them to seek expert advice from companies that specialize in litigation support services.”
The reuters.com news article concluded by stating that JPMorgan has not only set aside a total of $23 billion to settle legal issues, but it is also facing over a dozen investigations across the globe.
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