Last week we reported on JPMorgan Chase’s magically shrinking $13 billion settlement. We knew the disappearing act might happen quickly, but this is ridiculous.
Chase has all but recovered the entire $13 billion through a three percent stock price increase since the settlement was announced last week, according to Mark Gongloff at HuffPo. In one week, JPMorgan Chase shares added $7 billion to the company’s value.
If shareholders continue to celebrate the settlement at this pace, the total loss will be recouped by December. This calculation doesn’t include the $2.5 billion in savings to be had from the tax deductable portion of the settlement.
Chase’s haters agree the settlement, while nominally impressive, was a stellar deal for the bank and a raw deal for homeowners affected by Chase’s criminal conduct. This recent surge in their share price shows investors understand what the Justice Department evidently does not: banks can still buy amnesty on the cheap.
Check out this illustrative chart courtesy of HuffPo, via Yahoo Finance.