A US judge has decided that JPMorgan Chase & Co and Deutsche Bank AG must defend themselves against claims that they intentionally allowed Jeffrey Epstein to engage in sex trafficking.
The two banks may suffer more financial loss and reputational harm as a result of the ruling rendered by US District Judge Jed Rakoff in New York on Monday. This is because of their dealings with client Epstein.
Jeffrey Epstein Case
Women who claim Epstein sexually assaulted them must file proposed class actions against both banks, according to Rakoff. He said he would give his justification in due course.
The US Virgin Islands have filed a lawsuit against JP Morgan, claiming the bank ignored warning signs regarding Epstein’s alleged mistreatment of women at his island house.
Additionally, they may claim that the banks were careless and prevented the implementation of federal anti-trafficking legislation.
Rakoff rejected eight other claims against Deutsche Bank and six against JP Morgan made by Jane Doe, an Epstein abuser. October has been designated as the trial date.
The decision was a monumental victory for the hundreds of survivors of Jeffrey Epstein’s sex trafficking scheme and survivors of sexual abuse in general, who can all rest easier knowing no individual or institution is above accountability, according to Brad Edwards, the attorney for the anonymous Epstein survivors.
JP Morgan and Deutsche Bank failed to respond to inquiries about the choice.
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JP Morgan’s Prediction About US Recession
However, a string of banking crises this month, highlighted by Silicon Valley Bank’s failure, have forced analysts at several banks, including JPMorgan Chase, to completely rewrite their recession forecasts. This is because months of small victories against inflation and a generally robust economy could be undone in as little as two weeks.
The Fed will have a difficult assignment to do on Wednesday, but it is likely already passed the point of no return, according to a note to clients published on Monday by JPMorgan strategists under the direction of the bank’s chief global markets strategist, Marko Kolanovic.
With the airliner in a tailspin (because to a lack of market confidence) and the engines set to shut off (due to bank lending), a soft landing suddenly appears implausible.
In honor of the American economist Hyman Minsky, who is most known for his infamous prediction that protracted bull markets will inevitably lead to large and epic catastrophes, the analysts dubbed the current troubles as a potential “Minsky moment.”
When the check is eventually paid and the house of cards collapses, it is a Minsky moment. The banking crises on both sides of the Atlantic, China’s new diplomatic agreement with Saudi Arabia and Iran, and Chinese President Xi Jinping’s high-profile trip to Moscow and meeting with his sanctioned Russian counterpart Vladimir Putin—who was recently issued an international arrest warrant for committing war crimes—have all been recent examples of economic and geopolitical threats to the world, according to JPMorgan analysts.
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