Thursday, March 27, 2008

Scenes From the Mortgage Crisis, Part Next

The Oregonian newspaper gets hold of a JPMorgan Chase internal memo advising its employees how to falsify mortgage applications to get around automated safeguards in the system just as if it all were one big video game and not other people's homes and lives.
"It boggles my mind that any federally chartered organization would invite this kind of activity in such a flagrant way," said David Tatman, head of Oregon's Division of Finance and Corporate Securities.
But Tatman confirmed that as a state regulator, he doesn't have jurisdiction over the federally chartered Chase.
The U.S. Office of the Comptroller of the Currency has authority over Chase. OCC spokesman Dean DeBuck declined to comment on the document.

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