Rep. Barney Frank, a Massachusetts Democrat, defended JPMorgan on CNBC’s"Closing Bell" Wednesday, calling the recent lawsuit brought against the bank for alleged fraud at Bear Stearns a dangerous precedent.
In early October, New York State Attorney General Eric Schneiderman brought a multi-billion lawsuit against JPMorgan [JPM Loading... () ], charging fraud in the sale of certainmortgage-backed securities by Bear Stearns, later acquired by JP Morgan under government pressure to help solve the financial crisis.
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Congressman Frank, let's be frank about this. Fraud IS fraud and should be prosecuted especially in the case of what you all in Congress let be known as the "too big to fail". You instigated and initiated the mergers taking broke fraudulent companies such as Bear Stearns, Countrywide and Merrill Lynch and forced other unhealthy financial institutions to merge them into their operations. In other words, two negatives make a positive - no wonder this country is in economic trouble - no one seems to know simple mathematics.
Here is the basis of his position,
“I don’t want to set the precedent that when we go to someone in the future and say would you help us out, they say ‘no,’” said Frank, the ranking member on the House Financial Services Committee. “It is fair to say that when you did this in response to pressure from the federal government, you’re not liable for the mistakes of the people that were there before.”
Once again, Congressman Frank forgot what those banks did when "we" no, "they" gave them all this "free" money with the understanding that those troubled "too big to fail" bandits would honorably use that money and loan it back to the people who gave it to them in the first place. But, Mr Frank, that did not happen. If you recall, they made virtually no loans to the public but instead took all that free money bought Treasuries and other investment instruments making billions for themselves corporatewise and personally. They took "our" free money used it to their own greedy advantage and continued to let the people of America suffer and drown in the financial meltdown "they" created.
Read the entire CNBC article...click here