JPMorgan's $13B settlement a new starting point for future DOJ suits

On Tuesday, JPMorgan Chase agreed to pony up a record-setting $13B to settle a case with the Department of Justice over its questionable mortgage practices that precipitated the Great Recession.
 
The New York Times reports that the multibillion-dollar settlement, which amounts to about half of JPMorgan’s annual profit, signals a broader crackdown by the DOJ on big banks and other industries that profited at the expense of everyday Americans during the financial crisis.
 
According to a statement issued by Attorney General Eric Holder Jr., this settlement should be fair warning that “(N)o firm … is above the law.” JPMorgan issued its own statement reassuring stockholders that it has money set aside for these types of settlements; that half of the $13B is tax-deductible anyway; and that the firm is “pleased” at resolving with the DOJ this “agreement.”

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