BiggnightsLawsuits Keep Piling up for JPMorgan Chase
May 4th 2011 16:32
Though lawsuits on banks are hardly a rarity in today’s post-recession economy, JPMorgan can not be satisfied with what collectors are currently looking to gain off of them in court.
The latest lawsuit comes from Thornburg Mortgage, Inc. who claims that JPMorgan, as well as Citigroup and others, pushed them into bankruptcy. The lawsuit asks for $2 billion in damages.
The BusinessWeek article that broke the news mentions two other recent cases for JPMorgan Chase, one of which was with Lehman Brothers Holding, Inc., who sued the bank in a similar fashion after it went bankrupt in 2008. Just recently, JPMorgan and Lehman Brothers reached a settlement for $800 million in customer assets.
The other case mentioned is the now infamous Bernie Madoff case, led by trustee Irving Picard. The lawsuit claims that JPMorgan aided in Madoff’s Ponzi scheme. Picard estimates the losses from Madoff’s fraud at around $18 billion, and the suit against JPMorgan is currently seeking damages of at least $6.4 billion.
While these monetary losses may not be devastating to one of the Big Four banks in the United States, it sure doesn’t help the already tainted image of big bankers as greedy, money laundering fat cats. Jamie Dimon, the CEO of JPMorgan and one of Time Magazine’s 100 most influential people, will surely try to clean up JPMorgan’s reputation before things get worse. Maybe he can even give their lawyers a day off, too.
The latest lawsuit comes from Thornburg Mortgage, Inc. who claims that JPMorgan, as well as Citigroup and others, pushed them into bankruptcy. The lawsuit asks for $2 billion in damages.
The BusinessWeek article that broke the news mentions two other recent cases for JPMorgan Chase, one of which was with Lehman Brothers Holding, Inc., who sued the bank in a similar fashion after it went bankrupt in 2008. Just recently, JPMorgan and Lehman Brothers reached a settlement for $800 million in customer assets.
The other case mentioned is the now infamous Bernie Madoff case, led by trustee Irving Picard. The lawsuit claims that JPMorgan aided in Madoff’s Ponzi scheme. Picard estimates the losses from Madoff’s fraud at around $18 billion, and the suit against JPMorgan is currently seeking damages of at least $6.4 billion.
While these monetary losses may not be devastating to one of the Big Four banks in the United States, it sure doesn’t help the already tainted image of big bankers as greedy, money laundering fat cats. Jamie Dimon, the CEO of JPMorgan and one of Time Magazine’s 100 most influential people, will surely try to clean up JPMorgan’s reputation before things get worse. Maybe he can even give their lawyers a day off, too.
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