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So as you heard this is only the beginning of what could easily become a litany of lawsuits against big banks over sub prime mortgage -- -- mortgage backed securities one of the primary causes.
Of the economic collapse I'd like to bring in fox business' Charlie Gasparino.
That's Kelleher CEO better markets to react to this and talk about what's next to Charlie I wanted to write to -- Because you have some breaking news on there's some news you just uncovered in the past human well I mean you know look a legitimate question that was asked I think you might invested to -- From here and Daimler's.
Didn't bears they didn't JPMorgan when they've when did what bastards get some sort of agreement yet apartment -- I -- talking about it as well a comfort letter in debt up from indemnity from potential liabilities of Bear Stearns because they were buying a firm.
But always point out it was a shotgun -- I covered that that particular episode for a long time -- covered Bear Stearns is you know.
Steady demise into oblivion and we -- and it wasn't a pretty sight and the government clearly went.
Peoples and and the Treasury Secretary Tim Geithner then the president of New York fed.
Went to Jamie Dimon said can you please buy this company here's how -- arrange a deal.
Jamie Dimon did buy it and they thought they were doing was it is a business reason to buy stuff.
But they don't really doing the federal government favor here's what we know there was a comfort letter that these securities exchange commission.
Linda Thompson was the was the enforcement chief at the crime basically I gave JPMorgan meet the comfort level the letter however.
Only covers federal force -- action.
Reinforces the SEC to wait -- JPMorgan's role or more accurately lack -- that's a quote unquote in the comfort letter when -- charges related to Bear Stearns.
JPMorgan's -- letter cover statements by Bear Stearns executives about the -- part financial condition.
Prior to the class -- that was a concern because never Bear Stearns was saying everything's are right before they blew up.
We should point out that the cover letter covers other things where you have to keep the the actions JPMorgan executives you know in mind.
The letter does not.
Here's where snyderman has -- loophole does not rule out state enforcement action when I took the -- JPMorgan people about this.
They basically said over those three days -- it was a Friday Saturday at some -- Monday announcement Sunday night announcement three days or so.
They do not have time to get fifty separate letter.
No certainly not Dennis let me bring you an you know would it he basically called them liars in his statement to us here Fox Business earlier.
Based stand behind their statements and a lot of people are asking the question today.
Five days out from the election this is an Obama task force.
Is the timing suspect what do you -- Well I'm certainly not gonna defend the timing you know better markets has been calling for accountability on Wall Street for a long time in our view is just like the law -- applied on main street it should be applied on Wall Street.
And frankly if -- task force is really doing what it should have done complaints like this should have been filed a long time ago and Charlie knows well because he did a lot of reporting on this.
These allegations they're too big complaints Ambac the insurance company and FHFA -- filed prior complaints.
That detail egregious conduct by the -- Legitimate why now you're saying it should have been done awhile ago they just sat.
He woke up now five -- the banks.
You know I think those questions a legitimate and I think it's a grave disservice the American people the American people are entitled.
To the law being applied to Wall Street and it shouldn't be done in a context where their motives can be questioned very gonna prosecute his ought to be on the job and they should be doing my job for a long title.
I think this I remember -- then.
And in New York attorney general Andrew problem -- -- Came after Spitzer space was governor at the time -- was about to leave as governor because it sex scandal.
Governor Cuomo launched the investigation into mortgage backed securities I was at brand X at the time -- reported that he has something interest in that are reported at the time.
Governor Cuomo's father the former governor of New York Governor Cuomo himself is very close was friends.
With a guy named Vince TC.
-- was the number one board member on Bear Stearns.
I received an angry phone call from Governor Cuomo -- -- -- -- -- connection effect but there is one reason.
For the cynics.
And the conspiracy nuts out there why that case was -- I will point out this about about Erik -- and as well this is the most liberal activist.
Public official may be an inmate in in a semi major position that we have a country we.
We what I think eventually get these odd that -- -- out now in -- -- -- politics spring what do you think about JPMorgan's point that no good deed goes unpunished I mean obviously Jaime -- easing going to acquire company but he doesn't eight.
He can make profitable at some point because that would be -- responsible to shareholders at the same time.
We all know that weekend they were trying to combined people you know who had deposits that could support these banks and these brokerages that we're going under.
I think they feel like no good deed goes unpunished what I think about that argument.
Well I think -- -- for I think to some merit to but let's face it Jamie Dimon didn't buy this bank out of a public service he got this bank originally you'll remember two dollars a share -- -- -- they wait and I wait wait wait the United States taxpayers picked up -- guaranteed twenty to thirty billion dollars of the toxic securities.
And they knew the what the market nowadays like New York attorney general.
They did it for business purpose Eric but I and say well for business purpose.
On the other hand there's -- Christian is -- just a timing.
But why go after look there's plenty of banks we know from Goldman Sachs and so -- bank that's the same allegations in the same conduct a raft.
To them all well let me ask you don't know why you know I would say answer that -- I think two -- -- Jamie Dimon has been an outspoken critic of this administration and a lot of regulation I won't point out this stuff.
There is a difference between Ken Lewis.
Buying the liabilities of countrywide when he boredom you no one really asked -- to -- countrywide.
Pretty boy did he thought it was gonna build some massive mortgage empire with that starting -- -- and with that with that firm.
And the difference -- that and what went down with Bear Stearns I can tell you that's absolutely true middle I wasn't in the room but I was pretty close right.
Eight asked if they begged Jamie Dimon did do -- you -- walked away and that firm would have imploded and that would have created maybe but Lehman created later on a financial chops.
Guys we're out of time I hope you'll both come back -- -- this story again with that's because it's not going away obviously this is only the beginning we're gonna happen a lot of opportunity ahead to talk about that some -- Brit thanks about the -- For coming on --