This Day On The Street
Continue to site
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

JPMorgan Shareholders Need to Fight U.S. 'Extortion'

Updated from 9:09 a.m. ET with early market action and additional comments from Rafferty Capital Markets analyst Richard Bove.

NEW YORK ( TheStreet) -- The JPMorgan Chase (JPM - Get Report) daily leak-fest continues, and it would appear that no dollar figure is too high.

The Department of Justice has rejected a $3 billion settlement offer from JPMorgan, according to a Wall Street Journal report filed Tuesday night, citing an unnamed source. The bank was seeking to resolve multiple investigations by federal and state authorities into its sales of mortgage-backed securities.

The Justice Department rejected the offer as "too low for the number of cases involved," according to the report, however, "the discussions have widened to include other investigations of J.P. Morgan, and the final tally could be larger," according to the Journal's source.

Considering the continuing flow of investigations and leaks, it seems clear that JPMorgan Chase needs to bite the bullet and enter into a global settlement to clean the slate with regulators, the Justice Department and state attorneys general looking to get in on the action.

The highest proposed settlement figure that has been thrown out there so far is $20 billion, which, according to a New York Times DealBook report on Monday was "discussed at the bank," according to unnamed sources, although "it is not clear who proposed that number."

According to DealBook, "the Justice Department and the Department of Housing and Urban Development have discussed the possibility of striking a wide-ranging settlement to conclude many of the looming mortgage investigations from federal authorities and state attorneys general."

Investors' reaction last Thursday was muted, after JPMorgan entered into a $920 million settlement with four regulators over the "London Whale" hedge trading debacle. Later on Thursday, the Consumer Financial Protection Bureau said JPMorgan had already refunded $309 million to 2.1 customers, with the Office of the Comptroller of the Currency also assessing a $60 million fine, spring from the two regulators' combined investigation of its " illegal credit card practices."

JPMorgan's shares only pulled back 1% last Thursday, despite the day's $1.289 billion regulatory tab, possibly because that figure paled in comparison to the estimated $6.2 billion in losses from the hedge-trading problems during 2012. The $1.289 figure was also lower than the third-quarter litigation expenses CFO Marianne Lake hinted at when speaking at a conference on Sept. 9.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JPM $63.20 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs