JP Morgan Chase admitted that it broke the law in the “London Whale” trading debacle. While it is commonplace for banks to settle cases and pay money, it is uncommon for a Wall Street Bank to admit guilt.
The “Whale” losses stemmed from wrong-way bets made by JP Morgan’s London office involving complex derivatives. JP Morgan Chase agreed to pay $920 Million in addition to admitting guilt.
Geoffrey Broderick, the senior partner of the Resolution Law Group, says “While the admission of guilt is unprecedented, it is also appropriate. However, the admission was done at the corporate level. The behavior and culture on Wall Street must change, and that will only happen when CEOs and other senior executives are personally charged and held responsible.“
Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”
The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.