JP Morgan Chase has to pay $13 billion fines!!

JP Morgan Chase, the biggest bank of assets in the U.S is close to reaching $13 billion mortgage settlement with the U.S. government. The Federal Housing Finance Agency (FHFA) accuse the banks of being responsible for issuing financial products backed by toxic mortgage on the eve of the housing bubble collapse in 2007.  

JP Morgan has  to pay a record $13bn  fine for mis-selling mortgage-backed securities.
The news comes after the company had to stump up £1bn to settle the “London Whale” scandal, where a former employee placed damaging bets on the financial markets.
On top of these new fines, JP Morgan may still face criminal claims.
The bank has set aside $23bn to cover litigation costs. However, it estimates that another $5.7bn will be needed to cover the costs of criminal cases.

For the first time, a company is facing to pay such fine amount to the U.S. government. But this is not the first case that Morgan Chase is facing; in particular JP Morgan has recently faced the case of “London Whale” paying 1 billion dollars!  China accuses JP Morgan to hire the offspring of influential Chinese officials in order to win lucrative business deals. In addition, Federal accuses JP Morgan of manipulation in the brokerage of electricity overstating the price of energy in the two states.

JP Morgan Chase violations may jeopardize the survival of one of the most powerful financial institutions in the world. In addition, it is important to mention that HSBC has been fined a record amount of 2.46 billion dollars for misleading customers about the loans quality. The worrying situation of the most powerful banks might contaminate other banks like a domino effect. And then who will pay for them ??