JPMorgan CEO Dimon says government cases were 'unfair'

Thu Jan 23, 2014 7:29am EST

JPMorgan Chase Chairman and CEO Jamie Dimon speaks during a discussion on ''Closing the Workforce Skills Gap'' at the Aspen Institute in Washington December 12, 2013. REUTERS/Mike Theiler

JPMorgan Chase Chairman and CEO Jamie Dimon speaks during a discussion on ''Closing the Workforce Skills Gap'' at the Aspen Institute in Washington December 12, 2013.

Credit: Reuters/Mike Theiler

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(Reuters) - JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon said on Thursday that government legal cases, including those over mortgage securities the company settled for more than $13 billion, were "unfair".

Dimon, speaking on CNBC in a pre-recorded interview from Davos, Switzerland, said most of the government claims against the company were for dealings that took place at companies before JPMorgan bought them in the financial crisis.

"I think a lot of it was unfair, but I am not going to go into the details," Dimon said in the television interview.

JPMorgan agreed last year to pay $13 billion to settle multiple government claims over dealings in mortgage securities at JPMorgan and at two banks it took over during the crisis, Bear Stearns and Washington Mutual.

It also settled other assorted cases for about $7 billion more. Those included allegations stemming from derivatives and electric power trading and sales of extra products to credit card customers.

Dimon said JPMorgan had "two really bad options" in choosing to settle or fight the cases. Going to court could have taken three or four years and the outcome could have been worse, he said.

"It would really hurt this company and that would have been criminal for me to subject our company to those kinds of issues," Dimon said.

(Reporting by David Henry in New York; Editing by Lisa Von Ahn and Sophie Hares)

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Comments (5)
4825 wrote:
The government forces regulation on the financial institutions that ends up creating a crisis that the government then has to bail out using our tax dollars. Afterward the government slaps the hand of the financial institution and fines them. We have seen it before, government created crisis, government bailout of crisis and then government blame of crisis on something besides government. The same setup is being put into place in the health insurance market with obamacare. Time will tell.

Jan 23, 2014 8:26am EST  --  Report as abuse
ihk888 wrote:
Dimon’s wrong bet by switching the side from Obama to Romney in last election certainly costed a whole lot of money than his bonus. where was he when he enjoyed old good buddy relationship with the White House from his earlier support of Obama at Chicago and now he blames the US government for unfair practice? regardless, the share holders and public ended up with short while big shot get slap in their wrist with Hollywood showmanship of Obama Administration.

Jan 23, 2014 8:53am EST  --  Report as abuse
masaccio wrote:
This Dimon-quality whining is why Obama should have insisted on prosecutions instead of noodle-slapping fines. No one takes you seriously when you whine from jail.

Jan 23, 2014 10:01am EST  --  Report as abuse
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