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​JP Morgan home loan whistleblower gets $64 mn reward

Published time: March 11, 2014 14:35
John Moore / Getty Images / AFP

John Moore / Getty Images / AFP

The JP Morgan whistleblower who revealed the bank's flawed home loans scandal is being given a $64 million reward. The bank was fined $614 million for the debacle.

Keith Edwards worked for JP Morgan from 2003 to 2008, and was an assistant vice president supervising a government insuring unit.

The tips he provided to the US government made the bank to admit in a February 4th settlement, that in more than a decade it submitted thousands of unqualified government guarantee mortgages for insurance by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

The reward to Keith Edward consists of $56.5 million for the FHA portion and $7.4 million for the VA.

Evictions and foreclosures nationwide, resulted after the bank's loans went sour, and forced the government to pay millions of dollars to cover losses.

"There were a lot of bad loans made during the financial boom, and the United States taxpayer was left holding the bag through the VA and FHA loan programs," Edwards' lawyer, David Wasinger, told Reuters. "Hopefully the settlement sends a message to Wall Street that this conduct is not allowed, and that in the future it will be held accountable."

Wasinger had represented Edward O'Donnell, whose information proved Bank of America’s role in defective mortgage misselling which came to light in October 2013. The case is ongoing and the government is seeking a $2.1 billion fine.

Whistleblower assistance is widespread in the US Justice Department practice. Between 2009 and 2013 whistleblowers have been paid $1.98 billion for their cooperation with the government.

Comments (6)

 

Ghenghis 11.03.2014 23:07

Whistle blowing only works when you blow the whistle on someone TO the Government. It doesn't work if you blow the whistle ABOUT the Government. Figures.

 

Timothy Scrivnor 11.03.2014 20:34

Kiss and Tell, Exactly defines the Repubican Party, "President Obama did this" "Obama did that" first they kiss the banks, big oil, military complex, charter schools, etc, then they tell the American People, If you lower taxes jobs will trickle down, well the jobs all went overseas. not our fault, wimpy, wimpy, get off your butts and do your jobs congress!

 

Timothy Scrivnor 11.03.2014 20:23

J.P.Morgan Chase is the best in manipulative schemes. Offer electricity to Cali. and Mich. at prices “calculated to falsely appear attractive, $83 million in “excessive” payments, JPMorgan trader in London made several oversized bets in the credit default swaps markets that went bad to $6.2 billions. J.P. served as Bernie Madoff‘s primary bank for over two decades. (The LIBOR Scandal).....And again JPMorgan agreed to pay $100 million to credit card customers who said in class-action lawsuit that the bank had increased their minimum payments to generate more fee income.

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