Congress has passed laws that require bankruptcy court to have the authority in principle to approve reparations and counter-claims, as well as confirmation of recovery plans. 28 U.S.C No. 1334 -157 (b) (2) (A), (B), (C), (K), (L), (M), (N), (O). JPMorgan is seeking “comprehensive” regulation of federal and national mortgage investigations, which could include a $7 billion cash payment plus $4 billion for consumers, as others familiar with the negotiations have said. The Equity Committee and the TPS Group assert that transaction ticket holders received additional non-public information, including knowledge that a transaction is under discussion and the relative attitude of the parties during these negotiations. In particular, the equity committee and the GST group focus on the agendas exchanged by the parties. According to the Equity Committee, the parties recognized problems at a time when the public only knew that the debtors, JPMC and FDIC were involved in litigation. The Department of Justice, in collaboration with federal and regional partners, today announced a $13 billion comparison with JPMorgan – the largest comparison with a single unit in U.S. history – to resolve federal and federal government claims resulting from the packaging, marketing, sale and issuance of mortgage-backed residential real estate securities (RMBS) from JPMorgan Bear Stearns and Washington Mutual by January 1, 2009. As part of the comparison, JPMorgan acknowledged that it had made serious misrepresentations to the public, including the investing public, about numerous RMBS transactions. The resolution also requires JPMorgan to provide urgent assistance to underwater owners and potential home buyers, including in troubled areas of the country.
The transaction does not exempt JPMorgan and its employees from possible criminal prosecution. The Company also announced that, on February 16, 2012, jpMC, the Creditors Committee and the Equity Committee had reached an agreement with certain holders of the company`s preferred securities on the ownership of certain preferential securities issued prior to the Company`s bankruptcy protection application in September 2008. The Trust Preferred Consortium and the GST Group (together the GST Holders) stated that they owned the securities in question, an expense disputed by the company and JPMC during the detailed Chapter 11 proceeding. The Bankruptcy Court had previously ruled in favour of the company and the JPMC in this case and recent applications for the adoption of various forms of discharge were rejected. For more information on the terms of the transaction, see an agreement and a change of plan filed with the Bankruptcy Court on February 16, 2012. “This is a historic settlement that will help us hold accountable investment banks that played a role in creating and exacerbating the real estate crisis,” said Massachusetts Attorney General Martha Coakley. “We appreciate the work of the Department of Justice and other authorities responsible for implementing this resolution and welcome continued cooperation in other securitization cases.” According to Settlement Note shareholders, there was speculation that JPMC`s position on one or more potential trading conditions in March or November 2009 could have provided assurance that JPMC would occupy the same position in complex, multi-page and multi-party future negotiations on several issues. In such a complex negotiation, the shareholders of conciliation letters argue that discussions can only be important when all parties have reached an agreement in principle or, at the very least, a very close agreement. (D.I. 8429 to 10.) JPMorgan will pay the remaining $4 billion in facilities to help consumers harmed by the illegal behavior of JPMorgan, Bear Stearns and Washington Mutual. This relief will take various forms, including forgiveness in principle, modification of loans, targeted origin purposes and efforts to reduce poverty.