{"id":5706,"date":"2014-11-15T00:00:00","date_gmt":"2014-11-15T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/11\/13b_jpmorgan_chase_mortgage_se"},"modified":"2022-08-29T09:10:38","modified_gmt":"2022-08-29T14:10:38","slug":"13b-jpmorgan-chase-mortgage-se","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/13b-jpmorgan-chase-mortgage-se\/","title":{"rendered":"$13B JPMorgan Chase Mortgage Settlement Was Not Sufficient, Says Whistleblower"},"content":{"rendered":"

According to Alayne Fleischmann, the whistleblower who gave the evidence which helped resident in a $13 billion mortgage settlement from JPMorgan Chase(JPM)<\/a> to the U.S. Department of Justice last year, that amount was not enough. Fleischmann, a lawyer, joined the financial firm as a deal manager in 2006.<\/p>\n

She says that not long after she started working there she noticed that about half of the loans in a multimillion-loan pool included overstated incomes. Such loans, she said, were likely at risk for default\u2014a precarious position for both the investors and the securities. Fleischmann said that she notified management about how the bank was re-selling subprime mortgages<\/a> to customers without letting them know about the risks. She also spoke about how one bank manager wanted to put in place a non-email policy so there would be no paper trail to show that the firm was aware that such activities were happening.<\/p>\n

It was the sale of toxic sub-prime loans by JPMorgan and other US banks that incited the US housing market crisis, which eventually spurred the global financial meltdown of 2008. Repackaged loans were sold to pension funds and other institutional investors, with many buyers unaware of the high default risks involved.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to Alayne Fleischmann, the whistleblower who gave the evidence which helped resident in a $13 billion mortgage settlement from JPMorgan Chase(JPM) to the U.S. Department of Justice last year, that amount was not enough. Fleischmann, a lawyer, joined the financial firm as a deal manager in 2006. She says that not long after she […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3958,4001,3757,3864,3938],"tags":[],"class_list":["post-5706","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-jp-morgan-chase","category-mortgage-fraud","category-mortgagebacked-securities","category-subprime-mortgage","category-whistleblowers"],"yoast_head":"\n$13B JPMorgan Chase Mortgage Settlement Wasn't Sufficient | SSEK Law<\/title>\n<meta name=\"description\" content=\"According to Alayne Fleischmann, the $13 billion JPMorgan Chase mortgage settlement was not enough. 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