Recapping the day's news and newsmakers through the lens of CNBC.
Could your company handle a $13 billion legal settlement? If it could, congratulations! You've surely reached the very, very top. Over the weekend, JPMorgan Chase tentatively agreed to fork over that sum to settle the government allegations of shenanigans with mortgage securities. At least one expert, a former SEC prosecutor, says $13 billion is too much given the offenses were committed by two units that at the time were not owned by JPMorgan—units the bank bought later at the government's behest. Worse, he says, the settlement does not shelter JPM from criminal prosecution. But Jamie Dimon, the firm's CEO, says it's high time to get the issue resolved and move ahead. Banking analysts are keen on Dimon, think he will survive and the company's outlook remains strong.
"This number is absolutely preposterous. It's almost as if what we're getting out of federal regulators… is a roulette wheel or some kind of jackpot, how much can you jack up the fine."—Former SEC lawyer Jacob Frenkel, now head of corporate litigation at Shulman Rogers.
"We are going to resolve every matter as best as we can, and then we're going to move on and serve our clients."—JPMorgan Chase CEO Jamie Dimon