JP Morgan Chase Paid $9 Billion to Keep This Woman Silent About Its Crimes




Whistleblower Alayne Fleischmann has told all to journalist Matt Taibbi.

Over at Rolling Stone, Matt Taibbi has a blockbuster story about a thirty-something securities lawyer who Wall Street giant JP Morgan Chase paid $9 billion to keep silent.

Alayne Fleischmann witnessed criminal securities fraud while working as a deal manager at the bank. Part of her job was to review loans that the bank was taking over, and she began to see more and more cases where the bank was taking on loans where the individuals involved obviously could not pay.

One example: she reviewed a loan to a manicurist who claimed to have a $117,000 annual income; she calculated that she'd have to work 488 days a year to make that much money. Fleischmann and her co-workers flagged many of these loans as “stated income unreasonable for profession”; in one case in 2006, managers marked 33 percent loans in a loan sample under this category, but were effectively overturned by a Chase executive who forced them to drop the rate to less than 10 percent. Yet the bank continued to “sell...high-risk loans as low-risk securities,” despite the fact that doing so would be fraud.

Fleischmann continued to make similar complaints to her managers until she was laid off in 2008. She was under a confidentiality agreement with Chase, but she did have the ability to report crimes. So she put her trust in the federal government, which was tasked with overseeing and punishing the sort of fraud she witnessed.

But time and time again, the investigators demurred when presented with evidence of Chase's major crimes, instead choosing to focus on smaller ones. In 2012 and 2013, she worked with the U.S. Attorney's office in the Eastern District of California to again lay out the case for the crimes Chase had committed. In the fall of 2013, Attorney General Eric Holder had scheduled a press conference to announce fraud charges against Chase; Fleischmann felt vindicated at last. Yet curiously, the press conference was canceled, and reportedly the bank's chief, Jamie Dimon, had called Associate Attorney General Tony West and offered instead to go to settlement. By November, the case ended in a settlement for what was reported to be $13 billion, but ended up being closer to $9 billion due to the fact that $4 billion of it was “consumer relief” taken largely from investors. It soon became obvious that the reason that Chase and the government went to a settlement was to avoid a public trial and prosecutions which would hinge on Fleischmann engaging in a very public testimony.

By going to Rolling Stone, Fleishcmann has in a way been able to make the public testimony Chase effectively paid to stop. Still, a news story isn't the same as a criminal investigation. But Taibbi warns that the statutes of limitations for a number of these fraud cases is running out, which, he says is Fleischman's main motivation for speaking out now. Hope is rapidly fading for serious justice before JP Morgan Chase simply gets away with it.





Zaid Jilani is the investigative blogger and campaigner for the Progressive Change Campaign Committee. He is formerly the senior reporter-blogger for ThinkProgress.

From the OP:






A person who has $$$9 Billion doesn't have to work any more.

That Rolling Stone story does not say that Morgan Chase paid Alayne Fleischmann $$9 Billion. It says that the bank paid $$9 Billion to the U.S. government.

Apparently, Zaid Jilani didn't read that story carefully.

I posted this a few days ago.

The govt got $9B for JP Morgan crashing the economy in '07...... did the taxpayers and home owners, savers, or 401K clients get any of it?.....

You guessed it!

maybe they used it to defray costs on the bloated budget of the department of homeland securiity...................i'm just guessing though...

I believe you should go back and read for comprehension. The story says that Chase paid $9 billion to keep her silent, it does not state that it paid it to her.

Licensed to steal, so long as the government gets the fee. In this case $9 billion.



The real question would hinge on two words: competent and authority. The government can refute neither.

the essence of all wisdom is to question what one see and hear, most what one hear and see that was selected for one self to see and hear.

Yes, that is what the story said, but not what (according to the OP) Zaid Jilani said.


Form the OP: "Matt Taibbi has a blockbuster story about a thirty-something securities lawyer who Wall Street giant JP Morgan Chase paid $9 billion to keep silent."

Jilani's sentence isn't correct, because JP Morgan Chase didn't pay $9 billion to that lawyer.

Davidben hath spoketh, ok?

Davidben isn't the one who mistakenly criticized my reading comprehension.

Oh, sorry
You know some here in these forums, if you don't agree with them, think that you have a reading comprehension problem.
But hey, no one is perfect.
Especially if the come from the Northern Hebei Province of China.