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Truth is in favor of you and me; for the truth of our enemies whom we have been serving here in the U.S.A. for over 400 years (whom we did not know to be our enemies by nature) is the truth that the Black Man must have knowledge of to be able to keep from falling into the deceiving traps that are being laid by our enemies to catch us in their way which is opposed to the way of righteous of whom we are members. ~ The Honorable Elijah Muhammad

Saturday, November 8, 2014

Matt Taibbi and Bank Whistleblower on How JPMorgan Chase Helped Wreck the Economy, Avoid Prosecution

A year ago this month the U.S. Department of Justice announced that the banking giant JPMorgan Chase would avoid criminal charges by agreeing to pay $13 billion to settle claims that it had routinely overstated the quality of mortgages it was selling to investors. But how did the bank avoid prosecution for committing fraud that helped cause the 2008 financial crisis? Today we speak to JPMorgan Chase whistleblower Alayne Fleischmann in her first televised interview discussing how she witnessed "massive criminal securities fraud" in the bank’s mortgage operations. She is profiled in Matt Taibbi’s new Rolling Stone investigation, "The $9 Billion Witness: Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking."  | Democracy Now!

Related articles

The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare | Rolling Stone
Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.
Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as "massive criminal securities fraud" in the bank's mortgage operations.
JP Morgan Chase Paid $9 Billion to Keep This Woman Silent About Its Crimes | Alternet
Alayne Fleischmann witnessed criminal securities fraud while working as a deal manager at the bank. Part of her job was to review loans that the bank was taking over, and she began to see more and more cases where the bank was taking on loans where the individuals involved obviously could not pay.
One example: she reviewed a loan to a manicurist who claimed to have a $117,000 annual income; she calculated that she'd have to work 488 days a year to make that much money. Fleischmann and her co-workers flagged many of these loans as “stated income unreasonable for profession”; in one case in 2006, managers marked 33 percent loans in a loan sample under this category, but were effectively overturned by a Chase executive who forced them to drop the rate to less than 10 percent. Yet the bank continued to “sell...high-risk loans as low-risk securities,” despite the fact that doing so would be fraud.

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