Oct. 24 - Amidst news of a $13 bln settlement between JPMorgan and U.S. regulators, Breakingviews discusses how penalties should be calculated and why they sometimes seem to be pulled out of thin air.
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So -- Bank of America just lost a jury trial it was a fraud charges and one of our favorite judges did -- -- will eventually have to decide how much they have to pay. Meanwhile the votes so the big settlement -- -- Between JPMorgan and US regulates is and they do you wondering. Read -- whether what they certainly highly -- come -- and it's a little. As you point averages almost every day you're getting billions of dollars in settlements or jury trial. Are they say -- pulled out of thin -- they almost seem that way but actually there are statutes that prescribed. For certain offenses what the -- is there you can take stories. It's very good enough today fences time and I had it was but but then it starts to -- to let's look at this you know this reported JPMorgan sober thirteen billion dollars -- -- -- under a statute call for -- I've had struggled -- with the actress dance. It's a 1980 you know -- nine law passed in the aftermath of savings and loan crisis very high penalties but to find help with one point one million dollars per violation. Or continuing violation five point five million dollars or bigger bowl loss or gain to the the perpetrators. Lot of room there -- best for the country just going by the one point one of five point five million dollar figures you know you're talking about thousands of mortgages that have to add up to whatever. The bill right and don't then -- I don't have to treat -- -- separately and maybe not in the same -- they're really doing that right highly doubtful but also annoy you -- -- -- the same companies but you know anyway excellent. Sort of review of all the stuff you know there was 11 example where I think he was is CC decided that a whole bunch of -- is receiving some document were separate. -- can't separate residences and that he had to study involving us. It's right -- it didn't -- the son of disarmament in the -- event and Greg and I can't remember the name of the mutual fund now but it was. You know and -- the government's -- we got 200 instances where you've sent out these brochures and I think that each one of violation we think he was a hundred. Thirty million dollars but this one those are viewed by judge jets had gone -- in the that's one offense. Let's call it art that is 700000. Dollars it -- to -- at an arrangement that. And look at the way these things comparison even though there of these you know strictly jeans SEC case they have. Three -- of violation each year has a limit of them maximum penalty. You don't even -- you have those kind of defined about it come up with these -- widely varying numbers -- but it seems like. If fuel via Goldman Sachs would -- a legitimate in the eyes of the government if you JPMorgan now. You know you get slightly tougher treatment you know -- the -- since the very latest sense yet I mean if you're the focus of not you know not only that but it forces congress right public. That's not probably not going to be good for you but it may not be a good idea to be that high profile because the public and or congress -- look at the top lines. That that really you know may not be evenhanded -- in the immigrants cut -- that. It will leave -- their -- things to look. We'll follow -- settlements as they come through that mold breaking news for you tomorrow.