Why JPMorgan paid off Jeffrey Epstein after 2008 – Business News
The 2007 implosion of two Bear Stearns hedge funds that invested in dangerous mortgage bonds led to the broader crash of the financial system, and because it seems years later, a pretty sizable and eyebrow raising settlement paid by mega bank JPMorgan to the convicted pedophile financier Jeffrey Epstein.
The hedge funds went belly-up in the summertime of 2007, the primary public casualty of the smoldering financial disaster that might take down Bear, then Lehman Brothers, and had been it not for a authorities bailout, your complete financial system in 2008.
After Bear’s collapse, JPMorgan CEO Jamie Dimon, on the insistence of the federal government, took over the firm, its belongings and lots of of its liabilities, together with claims by buyers that they had been misled in regards to the financial situation of the hedge funds earlier than their collapse.
Epstein invested over $57 million of his money into one thing known as the “Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage hedge fund,” On the Money has realized.
Epstein was one of these buyers, putting more than $57 million of his money into one thing known as the “Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage hedge fund,” On the Money has realized.
Yes, the fund’s identify was a mouthful and will have served as a warning signal to anybody who wished to invest in it. So it’s a logical query why JPM needed to settle with the creep?
A JPM spokesman had no remark, so we will solely speculate. Meanwhile, Epstein’s ties to the hedge funds had been buried within the current New York Times opus about JPMorgan’s long banking relationship with the sexual predator.
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The article revealed that JPMorgan truly settled litigation with Epstein over the defunct hedge funds in 2011.
“The bank paid him an additional $9 million. It was to settle a lawsuit that Epstein had brought years earlier against the Wall Street firm Bear Stearns, which JPMorgan bought in 2008,” the Times wrote.
It was to my eye – and I’ve been masking the Epstein imbroglio for years with the excellence of interviewing him simply earlier than his 2019 arrest and subsequent suicide – the one merchandise actually new within the practically 7,500-word story, even when the paper didn’t play it that approach.
JPMorgan CEO Jamie Dimon took over the failed Bear Stearns, and Epstein sought $70 million kind JPMorgan as a result of it was now legally on the hook for Bear Stearns’ legal responsibility. REUTERS
My sources close to JPM say information of the settlement was on the market even when I by no means noticed it. They confirmed that the cost was certainly to settle Epstein’s litigation over his hedge fund investment, and a separate motion the place he claimed he was misled by Bear Stearns officers who had been touting the company’s financial power simply because it was on the verge of collapse, so he held its place to the bitter finish.
What has not been reported is that Epstein, in flip, sought $70 million kind JPMorgan as a result of it was now legally on the hook for Bear Stearns’ legal responsibility.
JPMorgan thinks they cut a good deal with Epstein, forking over much less than 10% of his authentic calls for. Maybe, or perhaps because the Times recommended, the bank was being good to a controversial however important consumer that introduced it tons of business given Epstein’s high-end wealth management work, earlier than of course, it was pressured to cut ties with Epstein over information of his lurid non-public life.
JPMorgan reportedly settled litigation with Epstein over defunct hedge funds in 2011. AP
But again, the funds appear a little fishy. The males who ran the Bear Stearns hedge funds had been introduced up on felony fraud prices and acquitted. Bear Stearns management was by no means charged with deceptive buyers as a result of it’s practically unimaginable to show intent.
During the financial disaster, a bank may very well be solvent one minute, and bancrupt the following given the fast-moving nature of the banking collapse. Also Epstein was close associates with Bear Stearns’ prime officers as a result of he as soon as labored there and was in all probability a larger consumer at that bank than he was at JPMorgan.
