Just days following the announcement of JPMorgan Chase’s $13 billion settlement with the Department of Justice (DOJ) and other agencies over tainted mortgage securities, the bank’s general counsel got confrontational with regulators during a panel discussion in New York.
Stephen Cutler, JPMorgan’s top lawyer, reportedly attempted to stimulate a discussion about how regulators exercise their power in the future, according to The Wall Street Journal (WSJ), namely the recent escalation in fines for the largest U.S. banks in the wake of the 2008 financial crisis.
“At what point does this stop?” Cutler said, referring to record-setting fines for J.P. Morgan and other large banks, the WSJ reported. “We should all be concerned,” he added, “because at a certain point people become immune to the numbers.”
While calling for a task to study what he views as duplicative behavior by multiple regulators, Cutler said, “There has to be a better way to allocate government resources.”
While a DOJ deal is still pending, JPMorgan Chase Co. managed to placate a group of investors who accused the bank of knowingly selling them questionable mortgage-backed securities. JPMorgan cut a check to these investors for $4.5 billion.
While separate from the $13 billion settlement the banking giant has pending with the Department of Justice, the deal, solidified on Nov. 15, could indicate an attempt by JPMorgan to clean up a string of legal concerns it has faced as a result of the securities in question.
For more on the JP Morgan settlement and banking regulations, check out Inside Counsel’s coverage below: