JP Morgan Chase to Pay $13 Billion

[ckaihatsu]

JP Morgan Chase to Pay $13 Billion

http://www.youtube.com/watch?v=AGiIvRuUtV0


Bigger mortgage settlements could be on horizon - N.Y. attorney general

http://www.youtube.com/watch?v=yXJt7A3Q3pI

[Czy]

Fuckers sold faulty mortgage assets. I mean, have you seen some of the shit these banks have sold? Collateralized debt obligations (CDOs) come to mind. This is essentially when a bank takes a pile of mortgages and "pools" them - instead of Local Bank #1 selling J.P. Nobody's mortgage, they take, say, a thousand mortgages and put it together in a single bond - the holder gets a slice of whatever those thousand mortgages pay. That way the bank doesn't have to investigate every single mortgage-buyer, they just have to understand the overall mortgage pool.

Derivatives are fucking evil, man. Don't get me started on credit default swaps (CDSs) or tranches or interest rate swaps. They allow megabanks to take on more and more and more and more debt.

-Czy