J.P. Morgan Securities Being Sued by U.S.

Is this a sign of the crash that is coming or just another show to make the people believe that we are cared about?

I guess someone has to be the fall guy....

The U.S. credit union regulator said it filed lawsuits against J.P. Morgan Securities and RBS Securities, alleging misrepresentation of investment vehicles backed by mortgages.

The National Credit Union Administration said the lawsuits involve damages in excess of $800 million and are related to the failure of five corporate credit unions.

The agency said in a statement on Monday that it may file more lawsuits in an effort to recover billions of dollars in losses related to the failure of these institutions.

``NCUA's legal actions are based on ongoing investigations of individuals and entities responsible for selling these securities to the failed institutions,'' said NCUA Board Chairman Debbie Matz. ``By these actions we intend to hold responsible parties accountable.''

J.P. Morgan declined to comment. A representative of RBS was not immediately available.
The lawsuits, filed in U.S. District Court in Kansas, allege that the firms made ``numerous misrepresentations'' in the offering documents for the securities.

``These misrepresentations caused the corporate credit unions that bought the notes to believe the risk of loss associated with the investment was minimal, when in fact the risk was substantial,'' NCUA said.
Corporate credit unions are the retail credit union's credit union, providing services including lending, and check and payment clearance services.

The wholesale credit unions have experienced more troubles than their retail counterparts because they did not face the same restrictions on permitted investments, leading to big losses during the financial crisis.

The NCUA seized three large corporate credit unions in 2010 after seizing two in 2009.

The five institutions are Members United Corporate Federal Credit Union of Warrenville, Illinois; Southwest Corporate Federal Credit Union of Plano, Texas; Constitution Corporate Federal Credit Union of Wallingford, Connecticut; U.S. Central Corporate Federal Credit Union of Kansas and Western Corporate Federal Credit Union of California.

The NCUA said in September last year that the five had $50 billion in troubled assets on their books that the agency would try to sell.

Matz said then the seizure will ultimately cost the industry between $7 to $9 billion and NCUA will collect this amount from credit unions over the next 10 years.

Any money recovered by the lawsuits would go toward reducing this cost, the regulator said.

Source

I hope this is the beginning of the end of the Morgan empire, because you know if one giant goes down, he's taking everyone else with him. That's just the way these people roll....

~Namaste

JP Morgan is irrelevant. And most probably it'll just gonna be fined, anyway. The real menace are Goldman Sachs, Monsanto, ADM, GE, Global Crossing...

ALL banks need to fail.
So we can get started anew
without them.

reply to post by boondock-saint


They've around for thousands of years. Not gonna happen.

JP Morgans being brought down on purpose. That's why SEIU, and other corrupt unions are attacking them, and why JP Morgan has so many shorts on silver. Now this, if JP Morgan falls America falls.

Originally posted by eldard
JP Morgan is irrelevant. And most probably it'll just gonna be fined, anyway. The real menace are Goldman Sachs, Monsanto, ADM, GE, Global Crossing...

I politely disagree... JP Morgan had the most involvement in the mortgage crisis by dealing in bad mortgages and selling them to smaller financial institutions.

They cheated the people of the country out of billions, maybe more.

I'm not discounting that Goldman and Monsanto aren't bad, but they own a different set of problems.

This may be the tip of the iceberg... Once investigators get in and start digging, what else are they going to find? Rigged silver and gold markets? Propped up commodity and mutual fund accounts? The rabbit hole can go pretty deep, and I'm hoping that someone is ready to follow it all the way down.

~Namaste

Originally posted by SonOfTheLawOfOne

Originally posted by eldard
JP Morgan is irrelevant. And most probably it'll just gonna be fined, anyway. The real menace are Goldman Sachs, Monsanto, ADM, GE, Global Crossing...

I politely disagree... JP Morgan had the most involvement in the mortgage crisis by dealing in bad mortgages and selling them to smaller financial institutions.

They cheated the people of the country out of billions, maybe more.

I'm not discounting that Goldman and Monsanto aren't bad, but they own a different set of problems.

This may be the tip of the iceberg... Once investigators get in and start digging, what else are they going to find? Rigged silver and gold markets? Propped up commodity and mutual fund accounts? The rabbit hole can go pretty deep, and I'm hoping that someone is ready to follow it all the way down.

~Namaste

I know that, and I'm saying JP Morgan is in on it.

Originally posted by SonOfTheLawOfOne

Originally posted by eldard
JP Morgan is irrelevant. And most probably it'll just gonna be fined, anyway. The real menace are Goldman Sachs, Monsanto, ADM, GE, Global Crossing...

I politely disagree... JP Morgan had the most involvement in the mortgage crisis by dealing in bad mortgages and selling them to smaller financial institutions.

They cheated the people of the country out of billions, maybe more.

I'm not discounting that Goldman and Monsanto aren't bad, but they own a different set of problems.

This may be the tip of the iceberg... Once investigators get in and start digging, what else are they going to find? Rigged silver and gold markets? Propped up commodity and mutual fund accounts? The rabbit hole can go pretty deep, and I'm hoping that someone is ready to follow it all the way down.

~Namaste

As far as I was aware.... JPM hardly got involved with CDS`s or CDO`s at all,this is all well known and documented. Hence why they have a fortress balance sheet.

I agree JP misrepresented them..

BUT ..

I also have to say that many people on ATS exposed the derivative markets back in 2006-2008 before the crash even happened. So the Credit Union Administration is saying that their own high paid CEO/CFO/Executives who backed the purchase of derivatives backed by mortgages (CDO's) didn't know what they were... but many amateur economist all over the net did?

Originally posted by SonOfTheLawOfOne
Once investigators get in and start digging, what else are they going to find? Rigged silver and gold markets? Propped up commodity and mutual fund accounts? The rabbit hole can go pretty deep, and I'm hoping that someone is ready to follow it all the way down.

~Namaste

Anyone care to bet how many investigators will be die from "suicide?"

I doubt this is anything but another charade by US government to show that voices of people are taken into account. Unfortunately, there may be usual victims of circumstances from the so-called "suicide" or "accident".

Majority of Americans will welcome this news though.