WASHINGTON — The non-profit group Better Markets filed a lawsuit against the Justice Department on Monday to block what it called an “unlawful” $13 billion settlement with JP Morgan over bad mortgage loans sold to investors before the financial crisis.
The record settlement with the bank, which was reached in November, does not release JP Moragn from potential criminal liability over the mortgages it packaged into bonds.
But Better Markets said it was still appalled that the settlement gave the bank “blanket civil immunity” for its conduct without sufficient judiciary review.
Dennis Kelleher, CEO of Better Markets:
“The Wall Street bailouts were bad enough, but now taxpayers are being forced to accept a secretive backroom deal that may well have been another sweetheart deal. The Justice Department cannot act as prosecutor, jury and judge and extract $13 billion in exchange for blanket civil immunity to the largest, richest, most politically connected bank on Wall Street.”
The lawsuit was filed in federal court in Washington.