With Tuesday's $13 billion settlement with J.P. Morgan over the sale of mortgage-backed securities, the Justice
Department has finally solved the mystery of the financial crisis. Turns
out that the bankers did it—to each other, and even to themselves.
We've been critical of this government plundering of a bank that did not need a bailout in 2008, but we defy anyone to follow the logic of Tuesday's Morgan agreement.
In Justice's press release, U.S. Attorney
for the Eastern District of California Benjamin Wagner describes "credit unions, banks and other investor victims" who
bought mortgage-backed securities that included "toxic" loans. The
government claims that Morgan ripped off other financial institutions
when it sold them bundles of mortgages. But the alleged victims include
institutions where the government has separately accused managers of
their own mortgage misdeeds.
Another
problem with this settlement is that even though the government says
that institutional investors were the victims, much of the $13 billion
is going elsewhere.
READ MORE Sphere: Related Content
Posts
No comments:
Post a Comment