BANKING - JPMorgan's Record Settlement

The much bigger outcome is JPMorgan having to admit wrong doing, which is not the common practice in settlements.

"Will JPMorgan's record settlement set incentive for better bank behavior?" PBS Newshour 11/19/2013

Excerpt

GWEN IFILL (Newshour):  J.P. Morgan's $13 billion settlement brings months of delicate, high-stakes negotiations to an end.

Under the terms of the deal, $4 billion will go to struggling homeowners in the form of reduced mortgage payments, lower loan rates and other assistance; $7 billion will go to investors as compensation.  The remainder will be fines paid by the bank.

The agreement comes as investigators are said to be pursuing cases against other financial institutions as well.

Some assessment now of the deal's significance and its problems.

Lynn Stout is a professor of business law at Cornell University.  She closely watches financial regulation.  And Bert Ely is a banking consultant.  He joins me here.