JPMorgan Chase, the biggest of banks, is reportedly close to paying $6 billion to settle claims by big institutional investors that they were sold bad mortgage-backed securities. That’s not to be confused with the other settlements JPMorgan is confronting, including the possible $13 billion one with federal regulators.
Despite the astronomical sums of money involved, these settlements are hardly JPMorgan’s biggest problem says Allan Sloan, senior editor at large at Fortune Magazine.
“I think the goal of the regulators is to get these institutions to break up voluntarily in the name of shareholder value,” Sloan says. “I think that’s the game plan, but I don’t hear anyone saying that.”
Click on the audio player above to hear the full interview with Allan Sloan.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.