http://about.bloomberglaw.com/legal-news/jpmorgans-alabama-debacle-set-to-cost-bank-1-5-billion/
JPMorgan Chase & Co. (JPM) may see as much as $1.6 billion go down an Alabama sewer.
The biggest U.S. bank by assets agreed to forgive $842 million of
debt owed to it by Jefferson County, Alabama, where it took the lead in
arranging risky securities deals that pushed the county into the largest
U.S. municipal bankruptcy in November 2011.
That agreement follows a $722 million settlement in 2009 with the
U.S. Securities and Exchange Commission related to the Jefferson County
financing. JPMorgan's total costs amount to a quarter of the $6.2
billion trading loss in 2012 from corporate-credit bets by a trader
known as the London Whale. The episode prompted an outcry in Washington
and challenged Chief Executive Officer Jamie Dimon's reputation as a
savvy leader.
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