“The $13 billion settlement JPMorgan Chase is reportedly set to pay would be the largest imposed on a single company by U.S. regulators. News of the settlement, which broke this weekend, reaffirmed a view commonly held on Wall Street: JPMorgan (JPM) is being singled out because Jamie Dimon dared criticize the Dodd-Frank legislation and the Obama Administration used the bank’s London Whale fiasco as an excuse to exact revenge on the man previously described as “Obama’s favorite banker.”
The size of the settlement would seemingly lend credence to that view but “JPMorgan Chase is just the first domino in what’s going to be a series of large civil settlements with large payments from Wall Street,” says William Cohan, a former investment banker, BloombergView contributor and best-selling author.
“There’s going to be more of this to come,” Cohan says, suggesting the JPMorgan settlement will be the “template for other banks” that were big players in the mortgage-backed securities market.” Here is a direct video link.
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