What Caused The 2008 Housing Crisis?
Now, the secret is out. JP Morgan Chase Bank, our country’s largest financial institution, engaged in financial activities that led to the 2008 Mortgage Crisis that resulted in federal settlements instead of jail time for top executives. The fallout cost millions of Americans their jobs, homes, and life savings.
This website shares the plight of Laurence “Larry” Schneider, a retaliated-upon whistleblower, who is on the verge of losing all three due to his decade-long litigation against JP Morgan Chase Bank.
Investors Take Huge Loss Betting On JP Morgan Chase Bank
Homeowners weren’t the only group of people who lost money due to JP Morgan Chase Bank’s banking practices regarding foreclosures (outlined in this Consent Judgement). Like many other investors, Larry also lost millions after the bank sold him thousands of mortgages–then changed the terms of the deal, according to The Nation.
This website breaks down Larry’s decade-long litigation as a whistleblower, revealing an elaborate “bait-and-switch” scheme orchestrated by JP Morgan Chase Bank.
Fun Fact: He isn’t just another whistleblower. The damning information Larry’s litigation revealed was used as the premises to create the National Mortgage Servicer Settlements (NMSS) by the Department of Justice. He’s also credited as the person who exposed JP Morgan Chase Bank’s sordid ruse that contributed to the 2008 Housing Crisis and the 2008 Financial Crisis.
Litigation Shows Bait-And-Switch Scheme Involving First Lien Mortgages
It also alleges that a secret database of faulty loans known as the RCV1 was included in the Residential Mortgage Back Security Settlement (RMBS).
While many investors received financial payouts from the National Mortgage Settlement, Larry didn’t. Instead, he was tied up in the judicial process for years until his litigation was dismissed.
There are a series of events Larry experienced during his case, that he argues, are in favor of JP Morgan Chase Bank. His sordid history in court reveals incidents where his case was used by the Department of Justice to create settlements with JP Morgan Chase Bank, yet in his pursuit for justice that same information was held under seal in federal court. Meaning for years the very secret that he revealed JP Morgan Chase Bank was hiding was inadmissible in court and hidden from the public.
Despite the courts deeming his litigation merited and credible to use to create settlements, Larry didn’t find his day of justice in court. Now, he’s finally telling his story.