Rep. Welch to J.P. Morgan: Do the right thing: Do not shift settlement costs to taxpayers.

Leads House effort to stop write offs of settlements over corporate wrongdoing

Rep. Peter Welch (D-VT) made the following statement after this afternoon’s announcement that J.P. Morgan and the U.S. Justice Department have reached final agreement on a $13 billion settlement over J.P. Morgan’s role in the near collapse of the American economy in 2008. It appears that, under current law, a portion of the settlement would be tax deductible.

Welch said, “J.P. Morgan, whose conduct caused great harm to taxpayers and the American economy, should not ask the taxpayer to pay any portion of its penalty in this important settlement. Jamie Dimon should do the right thing and direct his accountants to forgo the exploitation of any tax loopholes that could reduce the burden imposed by this settlement.  He should accept full responsibility for J.P. Morgan’s egregious conduct and that includes paying the full cost of this settlement.”

Rep. Welch and Rep. Luis Gutierrez(D-IL) recently sent a letter to J.P. Morgan CEO Jamie Dimon demanding that his company “accept the full payment of any fine.” They also introduced the Stop Deducting Damages Act (HR 3445) which would prevent corporations from reaching into the taxpayer’s pocket to pay their fines for breaking the law.

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