This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Federal Leak Machine Continues to Harass JPMorgan Chase

NEW YORK ( TheStreet) -- The shameless leaking by federal regulators concerning investigations and lawsuits against JPMorgan Chase (JPM) is bound to continue, but there's ultimately a silver lining for investors.

The New York Times DealBook Tuesday night reported that the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFPB) were preparing enforcement actions against JPMorgan Chase over the sale of "credit protection" products to credit card customers.

According to the report, which cited unnamed sources, "the bank will have to acknowledge internal flaws and dole out at least $80 million in fines."

Another set of coming enforcement actions will focus on JPMorgan Chase's efforts to collect from delinquent credit card borrowers, through lawsuits filed from 2009 to 2011. These actions may not result in fines, according to the report.

The leak on Tuesday night followed a coordinated leak Tuesday afternoon, that the Federal Housing Finance Agency was seeking a $6 billion settlement of a mortgage putback lawsuit against JPMorgan Chase.

The FHFA regulates Fannie Mae (FNMA) and Freddie Mac (FMCC), which continue to purchase the vast majority of mortgage loans originated in the U.S., after both companies were taken under government conservatorship in 2008. The FHFA sued JPMorgan and 17 other banks in 2011, claiming the banks had misrepresented the quality of mortgage loans sold to the two mortgage giants.

The regulatory actions over the attempts to sell identity-theft protection services to JPMorgan Chase's credit card customers are similar to those faced by Capital One (COF) in July 2012, when ordered by the CFPB to pay $210 million in fines and customer refunds over third-party efforts to sell "credit protection" products to its credit card customers.

The $80 million figure in DealBook's latest report on JPMorgan Chase is a drop in the bucket for the nation's largest bank, which managed to book its third-straight record annual profit of $21.3 billion, or $5.20 a share, during 2012, despite taking at least $6.2 billion in losses from the "London Whale" hedge trading debacle.

Speaking of the "London Whale," the Department of Justice may have felt left out of the federal leak fest. The Wall Street Journal -- citing "people close to the situation" -- on Wednesday reported that JPMorgan could be facing penalties of $500 million to $600 million as part of a settlement with the Justice Department, the Securities and Exchange Commission, the OCC, the Commodity Futures Trading Commission and U.K. authorities.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs