JP Morgan Chase caught red handed
Sharon | 28.03.2008 15:56 | London
A new memo has been passed to the US Securities and Exchange Commission, which has floated up from the depths of US bank JP Morgan Chase. It demonstrates that the mortgage fraud, which has paralysed financial markets, was sanctioned at the top levels of the banking system.
Current golden boy JP Morgan Chase, which 'saved the financial system' from disaster by stepping in to takeover failed investment bank Bear Sterns, has now been caught red handed endorsing fraudulent mortgage applications.
The memo circulated among Chase staff in the states called “Zippy Cheats and Tricks” offers tips on how to get dodgy loans approved through the bank’s in-house automated loan underwriting system (zippy).
http://ftalphaville.ft.com/blog/2008/03/28/11898/jpmorgan-chases-zippy-cheats-and-tricks-memo/
During the boom, it was common for lenders and brokers to get paid more for risky subprime loans than for 30-year fixed-rate loans because the higher-interest loans fetched a higher price on Wall Street. The memo tells staff to inflate the figures for the income of borrowers, so as to get the automated loan approval system to say yes.
http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/120658650589950.xml&coll=7
The global banking system is on its knees and has been brought to them by both spontaneous and organized fraud. Banks won't lend to each other because of this. Not because of some mysterious lack of confidence. Its because they all know that they have all committed a heck of a lot of capital to worthless assets (the fraudulent loan applications) and are like alcoholics that cannot accept they have a problem are staggering on.
Shut down the Zombie Banks
Reclaim the City
The memo circulated among Chase staff in the states called “Zippy Cheats and Tricks” offers tips on how to get dodgy loans approved through the bank’s in-house automated loan underwriting system (zippy).
http://ftalphaville.ft.com/blog/2008/03/28/11898/jpmorgan-chases-zippy-cheats-and-tricks-memo/ During the boom, it was common for lenders and brokers to get paid more for risky subprime loans than for 30-year fixed-rate loans because the higher-interest loans fetched a higher price on Wall Street. The memo tells staff to inflate the figures for the income of borrowers, so as to get the automated loan approval system to say yes.
http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/120658650589950.xml&coll=7 The global banking system is on its knees and has been brought to them by both spontaneous and organized fraud. Banks won't lend to each other because of this. Not because of some mysterious lack of confidence. Its because they all know that they have all committed a heck of a lot of capital to worthless assets (the fraudulent loan applications) and are like alcoholics that cannot accept they have a problem are staggering on.
Shut down the Zombie Banks
Reclaim the City
Sharon
