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Diller to Feds: Show us the JPMorgan money

Tuesday, 12 Nov 2013 | 8:38 AM ET
IAC's Diller: JPMorgan did the correct thing
Tuesday, 12 Nov 2013 | 8:11 AM ET
CNBC's Andrew Sorkin and IAC Chairman Barry Diller discuss Jamie Dimon and the JPMorgan settlement. Diller says JPM has done an impressive job changing things for the better.

IAC chief Barry Diller staunchly defended JPMorgan Chase's efforts to put its legal woes behind it, saying Tuesday the bank has handled itself "quite well" in the face of relentless pressure.

Speaking at the Dealbook conference aired on CNBC, Diller chided the government's efforts to put the squeeze on the largest U.S. bank. "You can't run a business like that without having all sorts of issues." JPMorgan and the Department of Justice are thrashing out a $13 billion settlement to resolve outstanding mortgage-related litigation.

(Read more: JPMorgan close to $13 billion mortgage settlement)

Barry Diller, chairman of IAC/InterActiveCorp.
Patrick T. Fallon | Bloomberg | Getty Images
Barry Diller, chairman of IAC/InterActiveCorp.

The billionaire entrepreneur also questioned whether it was advisable for federal officials to deprive the bank of billions of dollars in a proposed settlement, which would effectively siphon money away from shareholders.

"What I want to know about the $13 billion is: Where is it actually going? A relatively small portion of it goes to people who were actually harmed," Diller said. "The vast majority of it goes to the government."

Diller said JPMorgan's problems were in part a legacy of the deals it struck at the height of the 2008 financial pandemic. Swallowing Bear Stearns and Washington Mutual--both of which JPMorgan absorbed at fire sale prices--was "the right thing", Diller said. He added that the bank has changed many of the practices that has created legal, regulatory and risk-management headaches for the bank.

JPMorgan "got banged for a whole series of reasons, some of which i'm not sure are legitimate," Diller said. He called the bank's chief, Jamie Dimon, a "superb CEO" who is an "honest and decent man."

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