You're watching...
FBN’s Charlie Gasparino on the probability of JPMorgan and the SEC reaching a settlement deal today over mortgage-backed securities the firm was ove...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Let me it.
Jamie -- main town and his financial giant JPMorgan on the charge of settling with SEC of our mortgage backed securities.
That the firm was over saying Fox Business a senior correspondent I guess -- has a whole lot more what do you know on this is from what we understand.
-- a settlement in the neighborhood of four but 250 million dollars.
About half of what Goldman Sachs paid in its own sort of.
You know case of where the SEC alleged it and you know violated securities laws and -- -- toxic securities.
To investors.
I would say this case -- JPMorgan is you have them via the look at a lot of waste there's going to be some JPMorgan specific activity here that occurred during -- financial crisis but most of the charges here from what I understand.
Is going to be relating to what was going on at Bear Stearns -- JPMorgan took over Bear Stearns in 2008 the First Financial firm to to collapse and in during the financial crisis.
A lot of this stuff involves -- -- Bear Stearns I think that's why one of the reasons why.
If this defined is a lot less member JPMorgan took over Bear Stearns was asked -- -- -- it'll go -- down there.
Verizon like -- -- -- that went well it's when the Treasury Secretary the president United States during this -- Peg Paulson headed to New York fed Tim Geithner now he's the Treasury Secretary went all the major -- say please do this and you got two -- to do it which is what went down.
You do it and the JPMorgan got some sort of letter from the SEC saying we would take into consideration any any bad stuff that happened at -- that you're liable for.
I think that's part of this if you noticed JPMorgan stock is just down a little bit on this.
-- the price tag like -- said in the around 250 maybe 270 may be little more.
The announcement from when I understand could come as early as this afternoon we'll have to wait you know some.
You need to need to put the full SEC commission to sign off on -- obviously the chairwoman of the SEC Mary Shapiro probably -- last major act settlement.
As chairwoman jeez there's gonna be changed likely at the SEC.
That's gonna come later today but you know listen.
It's -- if for remember beats its bids Goldman Sachs a couple years ago on the abacus deal.
It's JPMorgan on this one.
He could feel a couple more I mean -- I really believe that -- be a few more these there's other stuff there's still looking at.
Now mortgage investigations and you know what is a mortgage investigation remember all the major Wall Street firms.
They asked -- and particularly banks it would take these mortgages right it would package them into securities they would sell to people.
How they actually sold and what they were disclosing when they were selling them.
Obviously this was as the financial as good as the housing market was collapsing from these are securities that are comprised of mortgages -- And what they knew about those mortgages when they knew it is that the hard here if you look at some of the charges and what the CBS EC complaint but if you look at the did Goldman Sachs -- look at what New York attorney general Eric -- been filed against JPMorgan.
The people particularly at Bear Stearns knew that these were kind of crummy mortgages that -- packaging stuff that was toxic.
And that the investor on the other end which would be pension funds mutual funds who knows.
Hedge funds.
They were kind of lead the implication is that.
They were hoodwinked into -- it Bob I would say it's not quite a hoodwinked.
People were making bets still could -- himself lot of major investors back and it would not buy this Gartman it would not.
You can look used to be able to go down like -- -- deal shaped.
And look at that issue the mortgage issue -- they had more right there were and those in the security is.
And if there was a certain firm a lot of this is what I am the theater to see in these in the stock it's -- -- about I think he kind of interest in reading you're gonna see like Bear Stearns people saying well -- -- this is a crappy mortgage.
You know this stuff coming from from our but you know these -- get the sort of processing centers -- all the -- used to be.
And a lot of firms bought these things and that they use that to take a mortgage and put -- into securities they knew there was a degree of toxicity with those mortgage you gonna see.
You seem to you can bid people appear starts talking about that that's usually within these into emails about that.
But you're also realized when they -- a lot of -- stuff it was 20062007.
Yes a lot people knew that -- the mortgage market was was heading forward -- -- concludes -- collapse.
There -- people on the other side of the trade to Hussein maybe not to remember that's like that's what this is not a criminal case it's a civil case great the same on man -- leverage our guests parade out with Scott and call on -- well.
Market turn --
