This report comes from MSNBC.com(Hat/Tip to Weasel Zippers for this one because I would never actually find myself slumming there)
“One of the nation’s biggest banks — JP Morgan Chase — admits it has overcharged several thousand military families for their mortgages, including families of troops fighting in Afghanistan. The bank also tells NBC News that it improperly foreclosed on more than a dozen military families.
The admissions are an outgrowth of a lawsuit filed by Marine Capt. Jonathan Rowles. Rowles is the backseat pilot of an F/A 18 Delta fighter jet and has served the nation as a Marine for five years. He and his wife, Julia, say they’ve been battling Chase almost that long.
The dispute apparently caused the bank to review its handling of all mortgages involving active-duty military personnel. Under a law known as the Servicemembers Civil Relief Act (SCRA), active-duty troops generally get their mortgage interest rates lowered to 6 percent and are protected from foreclosure. Chase now appears to have repeatedly violated that law, which is designed to protect troops and their families from financial stress while they’re in harm’s way.
A Chase official told NBC News that some 4,000 troops may have been overcharged. What’s more, the bank discovered it improperly foreclosed on the homes of 14 military families.”
Should we have ever bailed them out? NO!
This is yet another example of why we should let business fail… if their business practice is unable to sustain them, then it might be likely that their business ethics STINK! JP Morgan was one of only three banks that received $25 Billion from TARP… which was done under Bush during a Democratically controlled Congress. Bush should never have followed through with TARP and Congress should never have originated such garbage.
Referring to Chase chief communications officer Kristin Lemkauis, MSNBC continues:
She[Lemkauis] said that beginning this week Chase will be mailing a total of about $2 million in refunds to families that may have been overcharged. She says most of the families improperly foreclosed on have gotten or will get their homes back. A bank official described what happened here as “grim,” but emphasized the mistakes were inadvertent, not malicious.
NBC News did get in touch with JP Morgan Chase, at which time Kristin Lemkauis offered a prepared statement in response to the report from MSNBC. Some of the highlights…
“We made mistakes here and we are fixing them. There is no finer group of people than the men and women in the armed services who fight to protect our country every day. We are deeply appreciative of those who fight to protect our country and Chase funds a number of programs that provide benefits to military personnel and veterans — and while any customer mistake is regrettable, we feel particularly badly about the mistakes we made here. Starting several months ago, we commenced a review of our servicing of home loans to military personnel to ensure that we are addressing any and all problems. Beginning this week, we will be mailing a total of approximately $2 million in refunds to those who may have paid more than required. We now have a dedicated team in place devoted to servicing home loans for military personnel — the members of our military deserve nothing less. We welcome the opportunity to talk to Captain Rowles and others who would like to discuss their accounts.
We feel like we try to do a lot for military families and veterans, so it’s particularly painful to have made mistakes with them in our core business.”
The reply goes on to list the “Programs and Services” that Chase offers to Veterans and Military. It’s kind of sad that JP Morgan Chase chose to take money from a bailout and continued to use bad ethics in business practice. Fortunately, bad business choices have consequences and we are a nation of laws that are designed to protect the integrity of fair business transactions and the rights of the people. They will be under the watchful eye of an angry people who resent that our money was given to businesses that continued to screw us.
The concept of “Too big to fail” is bogus and needs to be squashed. Because of that attitude, we are now in a financial mess of epic proportions. Our nation is sitting on the precipice of financial ruin and nearing true bankruptcy because some people thought that widespread panic would be disastrous… I wonder what terms they will use refer to the madness that may ensue if our currency becomes solvent? You know, the madness that is going on all over England and Greece amongst other European nations. The bailouts and repeated stimulus plans for businesses have been a large part of what left us in this compromised position. China has made the long expected call to abandon the US dollar as a “thing of the past” for use as global currency, instead replacing it with the Chinese yuan, meanwhile President Obama is likely to help see that happen with his whole flippy-floppy decision on raising the debt ceiling.
“Here’s what then-Sen. Barack Obama said on the Senate floor in 2006: “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance the government’s reckless fiscal policies.”
Yet today is a whole different day and a whole different story…
“Treasury Secretary Timothy Geithner says failure to increase borrowing authority would be “a catastrophe,” perhaps rivaling the financial meltdown of 2008-2009.”
The notion of saving big business and banking institutions is inherently wrong for the country on so many levels… it is not a Republican idea to save big business, only to stay out of the way so that big business can ethically survive in a competitive and openly free market. The key part is ethically survive… any fiscally responsible Republican will tell you that if a business engages in unethical business practice that the business deserves what it gets… no help and no bail out.
“JP Morgan’s treatment of our military personnel is inexcusable,” said Sen. Richard Shelby (R-Ala.), the senior Republican on the Senate Banking committee. “I expect them to make this right without any further delays.”
And Senator Shelby, we expect you to help stop the practice of bailouts and to enforce free market principles that promote healthy business competition unhampered by ridiculous regulations that cause businesses to seek unethical and illegal corner-cutting measures in order to turn a profit.
We have to put aside the desire to continue increasing taxes, printing currency, and borrowing from competing nations. We must stop being arrogant enough to treat that money like it’s a profit that can be used for social programs, bailouts, and every other whim of the controlling party’s liberal agenda. We may be the biggest powerhouse out there for a bit longer but there are absolutely no countries lining up to tell us that we’re “too big to fail.” If there is a lesson to be learned here, it is that when a big business can’t survive, there is a competitor ready to take their place… kind of like how China is ready to take our place.