10-20-2013, 08:05 AM
So JP Morgan (who I've invested in in the past, but I'm not in right now) is apparently going to settle with the US government for a jaw-dropping 13 BILLION dollars for their role in the sub-prime mess. And that's just to settle the civil claims - they would still be open to criminal prosecution after that. I guess that helps reduce the accusations that the government has gone too easy on the banks for the financial meltdown.
Actually in this case I think it's pretty unfair on JPM. Most of the bad loans/practices were actually by Bear Stearns...who the government pressured JPM into buying. That seems to me a little like forcing a company to hire illegal aliens, and then prosecuting them for doing so.
Anyway...I wonder if them settling makes it a good stock to buy now? Removes at least some of the uncertainty. I still think all the banks have a lot of upside ahead as the recovery continues. I'm in BAC and C right now...but JPM is definitely a higher quality bank.
Actually in this case I think it's pretty unfair on JPM. Most of the bad loans/practices were actually by Bear Stearns...who the government pressured JPM into buying. That seems to me a little like forcing a company to hire illegal aliens, and then prosecuting them for doing so.
Anyway...I wonder if them settling makes it a good stock to buy now? Removes at least some of the uncertainty. I still think all the banks have a lot of upside ahead as the recovery continues. I'm in BAC and C right now...but JPM is definitely a higher quality bank.
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market