Jamie Dimon: The Mortgage System Is Such A Disaster "Everybody Is Going To Sue Everybody Else"

Jamie Dimon


Jamie Dimon said yesterday that “there have been so many flaws in mortgages that it’s been an unmitigated disaster” and the system is in serious need of an overhaul.”We just really need to clean it up for the sake of everybody,” he said on a conference call, acc cording to Bloomberg, “and everybody is going to sue everybody else, and it’s going to go on for a long time.”

No-one knows that better than Dimon, whose bank, JP Morgan, could pay between $20 – $25 billion to fight lawsuits stemming from issues related to faulty mortgages prior to and during the financial crisis, according to bank analyst Chris Whalen.

“JPMorgan disclosed about $2.5 billion in second-quarter costs tied to faulty mortgages and foreclosures,” according to Bloomberg. “The bank added $1.27 billion to litigation reserves, mostly for mortgage matters, and incurred $1 billion of expenses tied to foreclosures.”

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