JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE
Victim
Armed services members
Fines/Settlement
$35,000,000
Credit card holders
$1,200,000,000
Homeowners
$1,960,000,000
Consumers
$389,000,000
Madoff victims
$3,054,000,000
Mortgage-bkd securities
$4,500,000,000
Information linked to colored section
In April 2011, JPMC agreed to settle claims that the bank over-charged active or recently active
military service members on their mortgages by paying $27 million in cash to approximately
6,000 military personnel, by lowering interest rates and fees in excess of that permitted by the
Service Members Civil Relief Act (“SCRA”) and the Housing and Economic Recovery Act of
2008 (“HERA”) on soldiers’ home loans, and by improperly foreclosing upon homes owned by
borrowers protected by SCRA and HERA. Thereafter, additional borrowers were added to the
class and JPMC agreed to pay an additional $8 million into the settlement fund.1
In October 2012, JPMC paid $1.2 billion (20% of a global $6.05 billion settlement) to settle
claims that it, along with other banks, conspired to set the price of credit and debit card
interchange fees.2
On January 7, 2013, JPMC announced that it and a number of other financial institutions entered
into a settlement agreement with the Office of the Comptroller of the Currency and the Federal
Reserve Bank providing for the termination of the Independent Foreclosure Review programs that
had been required under the Consent Orders with such banking regulators relating to each bank’s
residential mortgage servicing, foreclosure and loss-mitigation activities. Under this settlement,
the Firm will make a cash payment of $760 million into a settlement fund for distribution to
qualified borrowers. The Firm has also committed an additional $1.2 billion to foreclosure
prevention actions under the settlement, which will be fulfilled through credits given to the Firm
for modifications, short sales and other types of borrower relief. 3
In September 2013, JPMC agreed to pay $80 million in fines and $309 million in refunds to
consumers who were billed for credit monitoring services that the bank never provided.4
In January 2014, JPMC agreed to forfeit to the federal government $1.7 billion (as a non-taxdeductible payment) as part of a Deferred Prosecution Agreement relating to its failure to comply
with the requirements of the Bank Secrecy Act with respect to Madoff’s brokerage account.
• JPMC also paid a $350 million Civil Money Penalty to the Office of the Comptroller of
the Currency in connection with its violations of the Bank Secrecy Act.
• JPMC also paid a $461 million Civil Money Penalty to the Financial Crimes Enforcement
Network (“FinCEN”) for failure to detect and adequately report suspicious transactions
conducted by Madoff.
• JPMC also paid $218 million to settle a class action brought by Madoff victims.
• JPMC also paid $325 million to settle claims brought by the Madoff trustee.5
On November 15, 2013, JPMC announced it had reached a $4.5 billion agreement with 21 major
institutional investors to make a binding offer to the trustees of 330 residential mortgage-backed
1
2011 Annual Report at 297-98.
2012 Annual Report at 318-19.
3
2013 Annual Report at 193.
4
http://money.cnn.com/2013/09/19/investing/jpmorgan-credit-card/
5
2013 Annual Report at 328-29.
2
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JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE
LIBOR victims
$109,000,000
Checking accounts
$110,000,000
JPMC shareholders
$1,020,000,000
Consumers of electricity
$410,000,000
Veterans
$659,000,000
Collateralized debt
$153,600,000
Municipal bond buyers
$228,000,000
The American people
$88,300,000
securities trusts issued by J.P. Morgan, Chase and Bear Stearns to resolve all claims on trusts
issued between 2005 and 2008.6
On December 2013, JP Morgan reached a settlement with the European Commission regarding its
Japanese Yen LIBOR investigation concerning antitrust rigging of benchmark interest rates and
agreed to pay a fine of €79.9.7
In February 2012, JPMC agreed to pay $110 million to settle claims that it over-charged
customers for overdraft fees.8
In September 2013, JPMC paid $920 million in fines to the Securities and Exchange Commission,
the Federal Reserve Bank, the Office of the Comptroller of the Currency, and the United
Kingdom’s Financial Conduct Authority to settle claims of mismanagement with respect to its
oversight of traders involved in the “London Whale” disaster which caused losses of
approximately $6 billion.9
In addition, JPMC paid a $100 million fine to the Commodity Futures Trading Commission and
admitted to reckless conduct and market manipulation.10
In July 2013, JPMC paid $410 million to the Federal Energy Regulatory Commission to settle
claims of bidding manipulation of California and Midwest electricity markets.11
In March 2012, JPMC paid the federal government a $45 million fine to settle charges that it
charged veterans hidden fees in mortgage refinancing transactions.12
In February 2014, JPMC agreed to pay $614,000,000 to settle charges asserted by the United
States Attorney’s Officer for the Southern District of New York, the Federal Housing
Administration, the United States Department of Housing and Urban Development, and the United
States Department of Veteran Affairs resolving False Claims Act, FIRREA and other civil and
administrative liability for FHA and VA insurance claims that have been paid to JP Morgan Chase
since 2002 through the date of settlement.13
In June 2011, JPMC paid a penalty to the SEC of $153.6 million to settle charges that it failed to
disclose material information to investors in collateralized debt obligations.14
In July 2011, JPMC paid the SEC $228 million to settle charges that it fraudulently rigged at least
93 municipal bond transactions in 31 states, generating millions of dollars in profits.15
In August 2011, JPMC paid the Treasury Department $88.3 million to settle claims that it
6
2013 Annual Report at 79, 193.
2013 Annual Report at 328; http://money.cnn.com/2013/12/04/news/companies/libor-europe-fines/
8
2012 Annual Report at 324; http://www.reuters.com/article/2012/02/06/jpmorgan-overdraft-settlement-idUSL2E8D68AD20120206
9
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539819965#.U8w3L_ldWy4
10
http://www.bloomberg.com/news/2013-10-16/jpmorgan-to-pay-100-million-to-settle-cftc-claims-chilton-says.html
11
http://www.ferc.gov/media/news-releases/2013/2013-3/07-30-13.asp#.U9J7C_ldWy4;
http://www.bloomberg.com/news/2013-07-30/jpmorgan-to-pay-410million-in-u-s-ferc-settlement.html
12
http://www.reuters.com/article/2012/03/13/jpmorgan-settlement-idUSL2E8ED89A20120313
13
2013 Annual Report at 194, 331; http://www.stopfraud.gov/iso/opa/stopfraud/2014/14-civ-120.html.
14
http://www.sec.gov/news/press/2011/2011-131.htm
15
http://www.sec.gov/news/press/2011/2011-143.htm
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JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE
Pension fund investors
$150,000,000
Home mortgagors
$22,100,000
JPMC customers
$20,000,000
Great Britain regulators
$48,600,000
Money market funds
$25,000,000
Municipal bond investors
$43,000,000
Mortgage investors
Mortgage-bkd sec victims
$296,900,000
$13,000,000,000
improperly processed transactions in violation of sanctions laws against Cuba, Iran and the
Sudan.16
In March 2012, JPMC paid $150 million to settle claims that it imprudently invested pension
funds in a risky debt vehicle.17
In December 2013, JPMC paid $22.1 million to settle a lawsuit alleging that the bank imposed
expensive and unnecessary flood insurance on homeowners whose mortgages the bank serviced.18
In April 2012, JPMC paid $20 million to settle claims by the Commodity Futures Trading
Commission that the bank improperly extended credit to Lehman Brothers based, in part, on
commingled customer funds that it was required to keep separate.19
In June 2010, JPMC paid $48.6 million to settle claims by Great Britain’s financial regulator that
the bank’s London unit failed to maintain required separation between customers’ accounts.20
In July 2010, JPMC paid $25 million to settle claims that it sold unregistered securities to a staterun municipal money-market fund that suffered a run on deposits because it held defaulted debt.21
In December 2012, the United States District Court for the Southern District of New York, granted
final approval of a $43 million settlement of individual actions against JPMorgan Chase and Bear
Stearns, as well as numerous other providers and brokers, alleging antitrust violations in the
market for financial instruments related to municipal bond offerings."22
In November 2012, JPMC paid $296,900,000 to the SEC to settle claims that the bank misstated
information about the delinquency status of mortgages that served as collateral for a securities
offerings underwritten by the bank. JPMC received more than $2.7 million in fees on the offering
and investors suffered losses of at least $37 million on undisclosed delinquent loans.23
On November 19, 2013, the Department of Justice (“DOJ”) announced a $13 billion settlement
with JPMC to resolve “federal and state civil claims arising out of the packaging, marketing, sale
and issuance of residential mortgage-backed securities (“RMBS”) by JPMorgan, Bear Stearns and
Washington Mutual prior to Jan. 1, 2009.” JPMC agreed to pay $13 billion in exchange for
complete civil immunity. The DOJ did not disclose the identity of a single JPMC executive or
employee responsible for its actions and did not require JPMC to take any remedial measures to
ensure that the conduct is not repeated.24
16
http://www.treasury.gov/resource-center/sanctions/ofac-enforcement/pages/20110825.aspx
http://www.bloomberg.com/news/2012-03-20/jpmorgan-chase-settles-aftra-pension-suit-for-150-million.html
18
http://www.law360.com/articles/496781/jpmorgan-agrees-to-pay-22m-in-force-placed-insurance-suit
19
http://www.cftc.gov/PressRoom/PressReleases/pr6225-12
20
2013 Annual Report at 328; http://www.nytimes.com/2010/06/04/business/global/04fine.html
21
http://www.bloomberg.com/news/2010-12-22/florida-reports-25-million-settlement-with-jpmorgan-chase.html
22
2012 Annual Report at 323.
23
2012 Annual Report at 192, 322; http://www.sec.gov/News/PressRelease/Detail/PressRelease/1365171486012#.U8w2kfldWy4
24
http://www.justice.gov/opa/pr/2013/November/13-ag-1237.html; http://www.usatoday.com/story/money/business/2013/11/19/jpmorgan-justice-departmentsettlement/3638137/; http://www.justice.gov/iso/opa/resources/69520131119191246941958.pdf;
17
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JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE
Fannie Mae/Freddie Mac
$1,100,000,000
Mortgage-bkd sec invstrs
$280,000,000
General public
This could be you
Year
2013
2012
2011
$650,000
$28,902,150,000.00
The settlement is to be paid as follows:
§ $2.0 billion as a civil penalty under the Financial Institutions Reform, Recovery, and
Enforcement Act (“FIRREA”);
§ $1.4 billion to settle claims by the National Credit Union Administration;
§ $515.4 million to settle claims by the Federal Deposit Insurance Corporation;
§ $4.0 billion to settle claims by the Federal Housing Finance Agency;
§ $298.9 million to settle claims by the State of California;
§ $19.7 million to settle claims by the State of Delaware;
§ $100 million to settle claims by the State of Illinois;
§ $34.4 million to settle claims by the Commonwealth of Massachusetts;
§ $613 million to settle claims by the State of New York; and
§ $4 billion in the form of relief to aid consumers harmed by the unlawful conduct of
JPMorgan, Bear Stearns and Washington Mutual.25
On October 25, 2013, JPMC agreed to resolve, for $1.1 billion, litigation with Fannie Mae and
Freddie Mac concerning mortgage repurchase obligations. 26
On May 2, 2014, the United States District Court for the Eastern District of New York gave
preliminary approval to a settlement of $280 million to resolve claims against JPMC that it misled
investors in billions of dollars’ worth of mortgage backed securities. The suit was brought by the
Plumbers’ & Pipefitters’ Local # 562 Supplemental Plan & Trust.27 The court granted final
approval on July 24, 2014.
On July 29, 2014, JPMC agreed to settle charges brought against it by the Commodity Futures
Trading Commission for filing inaccurate reports to the agency from 2012 and continuing even
after the charges were brought against JPMC.28
You might be JPMC’s next victim.
Description
See JPMorgan Chase Form 10-K Annual Report, filed February 20, 2014.29
See JPMorgan Chase Form 10-K Annual Report, filed February 28, 2013.30
See JPMorgan Chase Form 10-K Annual Report, filed February 29, 2012.31
25
http://www.justice.gov/opa/pr/2013/November/13-ag-1237.html
2013 Annual Report at 293, 330.
27
http://www.reuters.com/article/2014/05/05/jpmorgan-chase-settlement-idUSL2N0NR0SX20140505
28
http://finance.yahoo.com/news/jpmorgan-paying-650k-settle-cftc-174754408.html
http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfjpmorganorder072914.pdf
29
2013 Annual Report
30
2012 Annual Report
26
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JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE
2010
31
32
See JPMorgan Chase Form 10-K Annual Report, filed February 28, 2011.32
2011 Annual Report
2010 Annual Report
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