JP Morgan’s $13 Billion Settlement Explained [WFLT Radio]
(AP Photo/ Gilles Martin-Raget)
JP Morgan Settlement
JP Morgan agreed to pay the Department of Justice $13 billion. In an WFLT, Fort Lauderdale, Fla., radio interview Lawyers.com Editor-in-Chief Larry Bodine explains why the banking giant settled its case. He also discusses a recent Florida case, where two girls were charged with aggravated stalking for cyber bullying a 12-year-old girl into suicide.
The 2008 economic crash and following recession resulted from reckless bank activities. The wrongdoing included mortgage fraud against home buyers, investor fraud with mortgage-backed securities, and defrauding the government which bought the mortgage bonds.
The justice department was under intense criticism for failing to pursue the banks and executives responsible for the crash. The settlement aims to hold the bank responsible and make payments for people’s financial losses. The banks’ reckless conduct included issuing vast numbers of home mortgages, not wanting anyone to carefully examine the paperwork, then bundling these bad investments into securities and selling those securities to the public and investors. In this process, banks such as JP Morgan made billions of dollars.
As the largest fraud settlement of that the justice department has ever received, this could be a template for holding Wall Street responsible. This, along with criminal indictments of those who wrongly profited from this activity, will help restore investors’ confidence in Wall Street and the marketplace.
Bullying Leads to 12-year-old’s Suicide
Larry also analyzes the legal aspect of the tragic death of 12-year-old Rebecca Sedwick, who was cyber bullied to suicide in Lakeland, Fla. Police charged two girls, 12 and 14, with aggravated stalking. They hounded her on social media through online message boards and texts.
On Sept. 10, Rebecca ended her life by jumping off the third floor of a cement plant. USA Today reported that on the day before she texted a boy that she could not take the harassment any longer and would jump off the factory tower.
If the facts were a little different and the parents of Rebecca’s tormenters were more involved then they could be held criminally liable. Megan Meier, a 13-year-old, in Dardenne Prairie, Mo., hanged herself after the mother of one of Megan’s former friends harassed Megan online, pretending to be a teenaged boy. The mother, Lori Drew, was put on trial.
In this case, the two perpetrators were put in the juvenile system. Larry reminds listeners that the best thing parents can do is to talk to their kids and find out if someone is bullying them. Calling the school or the parents of the bullies can help protect the targets of cyeber harassment. Once the parents are involved, they can be held responsible depending upon their conduct, in not only criminal but also civil cases. They can be liable for defamation, libel and slander.
As a final reminder, parents should encourage their children to speak up, when online peer pressure becomes troubling.
To listen to the full interview, click on the above audio box.