One hand giveth but the other hand may take it away.
On early Monday morning the FDIC ruled that JPMorgan Chase could take over the assets of troubled bank First Republic.
Then later in the same day, US District Court Judge Jed S. Rakoff ruled to allow specific claims against Jeffery Epstein’s estate to move forward as they relate to a former JPM’s executive.
Jes Staley, a former private banking chief at JPM and ex-CEO of Barclays, is alleged to have ‘used aggressive force in his sexual assault of [anonymous victim ‘JPM Jane Doe’] and informed [her] that he had Epstein’s permission to do what he wanted to her,’ the ruling states.
The claims say JPMorgan and Deutsche Bank were legally liable for their alleged facilitation of Epstein’s sex crimes and “knowingly benefited from participating in a sex-trafficking venture,” Judge Rakoff wrote in a ruling out of the Southern District.
According to court documents, Staley exchanged 1,200 emails with Epstein between 2008 and 2012, after the pedophile was convicted on a single charge of soliciting a minor in a plea bargain in Florida.
Judge Rakoff last month ordered JPM’s CEO Jamie Dimon to set aside two days for depositions about what he knew about the bank’s relationship with sex offender and former client Epstein.
Victims allege that Epstein agreed to bring wealthy clients to bank in exchange for Staley — who was head of JPMorgan’s private banking division from 2000 to 2009 — using his influence to protect Epstein and his illegal human trafficking and sex crimes.
Three weeks earlier Mary Callahan Erdoes, a veteran JPMorgan executive who succeeded Staly as head of the bank’s giant private asset and wealth management division in 2009, was recently interviewed under oath in the case.
She “admitted in her deposition that JPM was aware by 2006 that Epstein was accused of paying cash to have underage girls and young women brought to his home,” according to the filing.
An aspect of JPM’s defense that it was in the dark on how extensive its ties were with Epstein the bank is separately suing Staley, claiming he concealed all he knew about Epstein from the bank.
The trial is scheduled for late October.