Photo of Obama Robbing Hood and one of his merry band of socialists
We have reported this story twice before. It doesn’t seem to be getting much traction but it should. The following clip from Megyn Kelly’s show gives a good summary but there is an error. JP Morgan Chase didn’t buy Countrywide. They bought WAMU and Bear Stearns. Everything else Judge Napolitano says is accurate, only apply it to WAMU, not Countrywide.
The 2008 economic collapse is being used by the Obama Administration to rob JP Morgan Chase, a private corporation, of earned profits so the government can redistribute the money to their favored constituents.
The DOJ forced a $13 billion dollar settlement on JP Morgan Chase investors, investors that include retirement funds for unions, seniors, and other average working people.
The settlement creates a very different relationship between government and private corporations, with the government now in the position of being able to trump up charges and then demand money in compensation.
The government now has the right to steal private property under the guise of fines, retribution, and criminal prosecution.
The government can beg a company to buy up entities to save the country from economic collapse as they did with JP Morgan and then fine the company for crimes committed by the said entities.
No one feels sorry for bankers and their investors. They’re easy targets.
The $13 billion dollar settlement agreed to by JP Morgan Chase was retribution for the economic collapse of 2008 – supposedly.
At the time of the 2008 collapse, JP Morgan was asked by the US government and Treasury Secretary Hank Paulsen to buy WAMU and Bear Stearns to stave off colossal systemic failure.
“Bear Stearns would have gone down if JP Morgan hadn’t acquired it,” Henry M. Paulson Jr., the former Treasury secretary, said in October on CNBC. “If that had happened, it would have been a real disaster,” said Mr. Paulson, who helped oversee both deals.
The government acknowledges that it urged Chase to buy the two banks.
Hank Paulson said that even though JP Morgan was “begged” to make the Bear Stearns and the WaMu acquisitions, the government did not make any guarantees on legal liabilities. “Jamie knew that at the time,” Paulson said.
Others remember it differently. JP Morgan was promised that if they bought WAMU and Bear Stearns, they would not pay for the crimes committed by the two entitites.
Whatever the case, JP Morgan must now give $13 billion to the government for crimes committed primarily by WAMU and Bear Stearns. About 80% of the liabilities/mortgages were in fact owned by the two companies and not by Chase. Chase said that the FDIC backed the mortgages and bears the responsibility.
The government rejected that argument.
In the settlement, the government will take $2 billion for themselves and another $7 billion for investors.
An astounding $4 billion is to be redistributed to people with underwater homes and to people facing foreclosure, to be doled out by far-left organizations. It is a Marxist style theft – redistribution – in the name of justice and retribution. None of the money is going back to the people who originally lost money.
The neighborhoods that will receive the billions are not yet known but they will be handled by Mr. Obama’s favored, far-left constituents. Any remaining funds will also go to a far-left ACORN-type organization – NeighborWorks of America.
There already has been a $25 billion national mortgage settlement over foreclosure abuses.
This will have no end.
The government plans to do the same with the other major banks, Bank of America, Wells Fargo, and Citigroup. Bank of America bought Countrywide at the government’s urging and that was the most corrupt of the enterprises. They face they same kind of government overreach.
The government is in essence regulating the profits of banks, taking the money, and redistributing it to those they deem less fortunate or more worthy, who also happen to be Mr. Obama’s constituents.
The Wall Street Journal wrote recently: The JPMorgan settlement “needs to be understood as a watershed moment in American capitalism. Federal law enforcers are confiscating roughly half of a company’s annual earnings for no other reason than because they can and because they want to appease their left-wing populist allies.”
It didn’t help that Jamie Dimon, CEO of JP Morgan Chase criticized Mr. Obama leading up to the 2012 election.
A couple years ago, Stephen Lerner of SEIU was caught on tape talking to a packed crowd about the planned destruction of capitalism.
Lerner said that they needed to focus on the vulnerable targets, namely the banks, and more specifically J.P. Morgan Chase. Lerner mused that charges such as foreclosures could provide a good basis for this attack.
Within days of the tape’s release, mobs of people shut down Chase banks throughout the country.
Audio of the meeting:
Attacks on banks are something this Administration also engages in and, coincidentally, Chase is their prime target as well.