Hell "NO" We the Taxpayers Don't Owe $13 Billion Fine on JPMorgan's Fine!!

How Much of JPMorgan’s $13 Billion Fine Will Taxpayers Foot?

By Sarah Lazare | Common Dreams | October 24, 2013 | 1:18am EST

Experts speculate settlement will allow bank to write off chunk of penalty as business expense

The head office of JPMorgan Chase rises over Park Avenue in midtown Manhattan on July 13, 2012 in New York City.
NEW YORK, NY – JULY 13: The head office of JPMorgan Chase rises over Park Avenue in midtown Manhattan on July 13, 2012 in New York City. The bank, which reported its second-quarter results on Friday, disclosed that the losses on a credit bet could mount to more than $7 billion, as the nation’s largest bank indicated that traders may have intentionally tried to conceal the extent of the loss. JPMorgan also said Friday that it would be forced to restate its first-quarter results. (Photo by John Moore/Getty Images)

JPMorgan whose fraudulent mortgage claims helped take down the economy in 2008—will likely be able to write off its much-touted $13 billion fine as a business expense, meaning U.S. taxpayers would help foot the bill.

The potential loophole in a penalty that was already dwarfed by the bank’s massive profits has critics charging that the fine is not justice served, but just the price of doing business.

“What is the point of fining JPMorgan these large amounts if the taxpayer is picking up the tab?” asks D.S. Wright, writing for FiredogLake.

JPMorgan has reached a tentative agreement with the U.S. Justice Department to pay a record-setting $13 billion in fines. While negotiations are still ongoing, $9 billion of this penalty is expected to go to the government, while $4 billion will go to the Federal Housing Finance Agency to allegedly end up in the hands of customers who were swindled by the bank.

Yet, JPMorgan may be able to write off a huge swath of these expenses.

“Section 162(f) of the tax code bars deductions for fines and penalties paid to the government, but JPMorgan might be able to negotiate an agreement to classify the payments as something else,” Kim Dixon and Brian Faler of Politico write. “Those payments labeled compensatory or for restitution are more likely to be deductible.”

“I think it’s a safe bet that a substantial portion of the deal will be deductible,” Dean Baker, co-director of the Center for Economic and Policy Research, told Common Dreams.

The wording of the final agreement will determine which penalties are tax deductible. “If the settlement is formally called a penalty or fine then it would not be deductible,” said Baker. “If it’s something other, like compensation, then it probably is.”

Steve Rosenthal, a former corporate lawyer and fellow at the Tax Policy Center, told Politico it is likely that the FHFA payments will be written off as tax deductions. “I am guessing it is probably described in a way that allows JPMorgan to deduct,” he said.

This means that U.S. taxpayers may be forced to help JPMorgan pay its fines.

“There might be a reason for the government to negotiate an agreement which assures the deductibility of [certain] payments by JPMorgan Chase,” said George Yin, a law professor at the University of Virginia and former chief of staff at the congressional Joint Committee on Taxation, in an interview with Politico. “In that case, [JPMorgan] might be willing to agree to a larger gross settlement amount, which might play well for the government.”

Yet, as Robert Scheer writing for Truthdig points out, even if JPMorgan did pay the whole $13 billion fine, it would only represent half of the profit the company turned last year alone.

THIS ARTICLE ORIGINALLY APPEARED AT Common Dreams

This article is brought to you by Intellihub.com

Intellihub.com makes our content available for everyone to distribute and re-post as the information contained is vital. However, with that being said, we encourage you to donate as we are not funded by large corporate interests.

Views: 76

Reply to This

Replies to This Discussion

Banksters raping our economy and making us pay for it!!!  

This means that U.S. taxpayers may be forced to help JPMorgan pay its fines.

JPMorgan Sux

RSS

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Sandy favorited tjdavis's photo
14 minutes ago
Doc Vega posted blog posts
3 hours ago
Burbia commented on tjdavis's video
Thumbnail

Free (Acoustic Version)

"I had the Controversy album. Next was 1999. Was given Purple Rain for Christmas by four people. I…"
18 hours ago
Burbia posted a blog post

The Noticing Continues

American woman says “I’ve had enough” of the white hate pushed on the populationQ“We're the only…See More
19 hours ago
tjdavis posted a video

Free (Acoustic Version)

Provided to YouTube by Legacy RecordingsFree (Acoustic Version) · PrinceFree℗ 2025 NPG Records, LLC, under exclusive license to Legacy RecordingsReleased on:...
21 hours ago
Burbia posted a video

Why Does Israel Suddenly Want President Trump Dead?

Please help me counter injustices in Muslim world by supporting my journalism and CJWS here: ▶️ https://www.patreon.com/c/cjwerlemanor via YouTube here: ▶️ h...
yesterday
Doc Vega posted blog posts
Saturday
Burbia favorited tjdavis's photo
Saturday
FREEDOMROX's blog post was featured
Saturday
cheeki kea commented on cheeki kea's blog post WHY YOU MUST UNDERSTAND AMYLOIDOSIS AND AMYLOID PLAQUES June 13, 2022
Saturday
FREEDOMROX posted a blog post
Friday
Doc Vega commented on Doc Vega's blog post The Many Keys to Deadly Secrecy in our Government
"cheeki kea, thanks so much for your support."
Friday
FREEDOMROX posted a blog post
Thursday
cheeki kea favorited Doc Vega's blog post The Many Keys to Deadly Secrecy in our Government
Thursday
cheeki kea commented on cheeki kea's photo
Thursday
cheeki kea posted a photo
Wednesday
cheeki kea replied to cheeki kea's discussion Tartaria
"Greetings to you John, You're right and it didn't take long for those manuals to totally…"
Wednesday
Doc Vega posted a blog post

The Many Keys to Deadly Secrecy in our Government

We now know thanks to the legislation of FOIA access to federal documents and evidence and the…See More
Wednesday
Less Prone favorited tjdavis's photo
Jun 3
Less Prone favorited rlionhearted_3's photo
Jun 3

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted