Replies to post #1581 on Syncora Holdings Ltd. (fka SYCRF)

[rockraider3]

That is true, and I wouldn't expect any criminal charges, even though they are warranted. But when you have the following, it's pretty compelling. Unfortunately, the Governmetn will probably just accept a "Global Settlement" for pennies on the dollar with no admission of wrong-doing and leave everyone else scrambling for crumbs.

Among the offices that received leads was Sacramento, Calif., which got documents related to billions of dollars of mortgage-backed securities issued by J.P. Morgan between 2005 and 2007, according to people with knowledge of the investigation. Among them, according to two people familiar with the investigation, was an email from a bank employee, warning her superiors they were vastly overstating the quality of the mortgages being bundled into securities. The bank went ahead and securitized them anyway, according to these people.

The woman who wrote that email has been cooperating with federal authorities and is expected to be available as a witness if the government ever brings a case to court, these people said. Her cooperation, along with documents, has fueled confidence among some lawyers within the Justice Department that they have built a solid, prosecutable case built on hard evidence. Among the documents the government has are ones suggesting J.P. Morgan knew the underlying mortgages it sold were of poor quality but told investors otherwise, according to people familiar with the investigation.