JPMorgan Chase admits it lied about the quality of mortgage backed securities

Dishonesty seems to be in the Chase corporate culture with this latest admission by Chase that it lied about the quality of mortgage-backed securities it sold to other banks and credit unions (Marketplace, 6/21/11).  As it sold the securities, it claimed they had near-zero default levels, but almost immediately after they were purchased, defaults soared so high the securities became almost worthless.

Bogus securities sold by Chase and the Royal Bank of Scotland lost so much value they caused the failure of five credit unions.

Yea, these are the guys that are watching your money.  Still think Chase doesn’t arrange your deposits and debits to cause overdrafts?

1 Comment

  • By John Heiser, July 9, 2011 @ 10:25 am

    We should all know better. Look at the parent Banks, the Chase Manhattan,vehicle for David Rockefeller and his plans for world dominance,and one of the J.P.Morgan Banks. Morgan was personally responsible for the US getting drawn into WWI, as he had ‘bet’$8billion dollars, in French loans on the result, which, had the United States not entered, he would have lost. Years after the war, all of that finally came out. If we can find a sound and well run smaller bank, we would probably all be better off.

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