J.P. Morgan's chairman, Jamie Diamond, accepted the Justice Department's charges that his bank was guilty of massive fraud, although he was quick to blame underlings, subsidiaries, overseas branches - everybody but himself and his management team.
agreed to pay an $11 billion fine and restitution to defrauded mortgage holders.
No organization would agree to pay an $11 billion fine, and take such a big hit on its reputation, unless it knew the Justice Department
had an air-tight case.
The Times did editorialize a bit when it pointed out that Mr. Diamond
is now in "damage control" mode, and is fighting the possibility that the Justice Department
will force J.P. Morgan Chase
to admit guilt, which would open it to thousands of individual lawsuits.
This was the only "opinion" part of the Times' story.
The Wall Street Journal
, on the other hand, did not treat this major story as "news.
Instead, it chose to deal with it on its "Opinion" page with an editorial entitled "Robbery at J.P. Morgan.
It accuses the U.S. government of looking for easy money by blackmailing a rich bank; the editorial nurtures the impression that the Justice Deptartment strong-armed Jamie Diamond
into admitting that his
bank had participated in massive fraud.
the "gun" was the threat of fine/penalty if high risk loans were not made.
, here is a "respectable" source defining the "gun". ~~~ LINK - Cincotta's
group successfully negotiated $173 million in CRA agreements from three major downtown banks in 1984, settlements that served as models for other cities.