Saturday, May 19, 2012

"It doesn't smell right" is how JP Morgan Chase force-placed reinsurance was described by a New York regulator at a hearing Friday

New York's Department of Financial Services hammered banks over their relationships with force-placed insurers in a Friday hearing, challenging JPMorgan Chase (JPM) officials on lucrative reinsurance arrangements that the Department suggested are tantamount to kickbacks.

"Hundreds of thousands of people are going to get foreclosed on, and Chase is profiting immensely from the reinsurance," DFS Superintendent Benjamin Lawsky said to JPMorgan Chase executives on Friday. "It just doesn't smell right."
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