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The JP Morgan whistle-blower who revealed the bank’s flawed home loans scandal is being given a $64 million reward.
The bank was fined $614 million for the debacle.

Keith Edwards worked for JP Morgan from 2003 to 2008, and was an assistant vice president supervising a government insuring unit.


Originally Posted at RT.com:

The tips he provided to the US government made the bank to admit in a February 4th settlement, that in more than a decade it submitted thousands of unqualified government guarantee mortgages for insurance by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

The reward to Keith Edward consists of $56.5 million for the FHA portion and $7.4 million for the VA.

Evictions and foreclosures nationwide, resulted after the bank’s loans went sour, and forced the government to pay millions of dollars to cover losses.

There were a lot of bad loans made during the financial boom, and the United States taxpayer was left holding the bag through the VA and FHA loan programs,” Edwards’ lawyer, David Wasinger, told Reuters.“Hopefully the settlement sends a message to Wall Street that this conduct is not allowed, and that in the future it will be held accountable.

Wasinger had represented Edward O’Donnell, whose information proved Bank of America’s role in defective mortgage misselling which came to light in October 2013. The case is ongoing and the government is seeking a $2.1 billion fine.

Whistleblower assistance is widespread in the US Justice Department practice. Between 2009 and 2013 whistleblowers have been paid $1.98 billion for their cooperation with the government.


    • Probably… threat to “national security” and all that.  Funny how the Gov just LOVES whistle-blowers UNTIL they blow their whistle on GOVERNMENT activities.  THEN, it becomes a completely different matter.  Uh-huh.
       

  1. So wait, they either get suicided like those bankers, paid like this man or hunted like an animal like Snowden. There doesnt seem to be any viable choices in my book. plus since the media wont report any of this, the big banks just find a different “modus operandi”.

  2. ““There were a lot of bad loans made during the financial boom, and the United States taxpayer was left holding the bag through the VA and FHA loan programs,” Edwards’ lawyer, David Wasinger, told Reuters.“Hopefully the settlement sends a message to Wall Street that this conduct is not allowed, and that in the future it will be held accountable.””
     
    Somehow, I doubt it.  My reason for doubt is that this does not change anyone’s behavior.  Nobody was put on trial, got convicted, or went to jail.  THAT is what it will take to change the fact that personal and corporate greed has completely overwhelmed the financial laws.  Do egregious and illegal financial crap, get richly rewarded, and get a wrist slap of a fine… if caught, which is unlikely.  Wash, rinse, and repeat.  This is a VERY profitable business model and until it gets too expensive to engage in, it WILL continue.  Fines are not sufficient to prevent this kind of thing unless they are HUGE.  If the fine was triple the amount realized from the criminal activity and those who authorized and implemented the illegal activity ended up with their personal wealth confiscated and their butts in jail for 15-20 years, THEN we would have the laws in place that are up to the task of deterring this sort of crime.  Until then, it will be… steal a billion, pay $10 million in fines, and continue to run the 99% profit machine. Different day / bank, same B$.
     

    • The fines and penalties were calculated into this mess as a cost of doing business. Until they start taking every penny earned on illegal deals plus another 50% in penalties nothing will change.

  3. Ah the good old days, when a banker could steal with impunity and his minions would cover up for him. 
    It’s still business as usual but the disaffected employees are either laid off, paid off or given free flying lessons
    That sort of paycheck can buy some serious hide out money

    • Indeed it does, Pat, and that would be my recommendation as well.  Don’t merely *threaten* to go public.  DO IT ASAP!  Having some proof in hand will do wonders for your credibility at the FBI or other enforcement agency.  But DO keep copies of everything, preferably with someone not related to you but trustworthy who can hold it and release it in case of your untimely demise… or in case these documents somehow manage to get “lost”.

       

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