ML-Implode News - The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare

[From a private lawsuit over the deal, ] in just the first year, the security suffered $51 million in losses, nearly 50 times what had been projected. It's hard to say how much of that was due to the GreenPoint loans. But this was just one security, one year, and the losses were in the tens of millions. And Chase did deal after deal with the same methodology. So did most of the other banks. It's theft on a scale that blows the mind.
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It soon became clear that the SEC wasn't so much investigating Chase's behavior as just checking boxes. Fleischmann received no follow-up phone calls, even though she told the investigator that she was willing to tell the SEC everything she knew about the systemic fraud at Chase. Instead, the SEC focused on a single transaction involving a mortgage company called WMC.Â "I kept trying to talk to them about GreenPoint,"Â Fleischmann says,Â "but they just wanted to talk about that other deal."

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The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare - Matt Taibbi