NEW YORK (TheStreet) -- JPMorgan Chase (JPM) agreed to pay a record settlement amount of $13 billion to the Department of Justice (DOJ). Keith Bliss of Cuttone & Company told TheStreet's Debra Borchardt this "staggering sum" is three times larger than the previous record settlement, and he doesn't necessarily agree that it is fair.
He said JPMorgan is the scapegoat in the situation, involving the toxic debt the bank absorbed from the Washington Mutual acquisition that it was essentially asked to make by the federal government.
Bliss said that while it is a lot of money, it might have been the best move for the bank to pay up and move on from the issue. But that doesn't mean JPM is out of the woods yet. It faces civil lawsuits from Washington Mutual bondholders, despite the FDIC backstopping the bonds.
Bliss suggested that shareholders be prepared for more complex situations and settlements for the bank down the road. He also doesn't think JPM will be the only bank hit by lawsuits either. He said the situation is a "template" for the government with other banks and institutions.
-- Written by Bret Kenwell in Petoskey, Mich.