The Widow, the Bank, and the $8B Verdict

&gt; Once the children discovered the estate’s money was being used to pay the bank’s lawyers in the legal fight, they asked for the bank to stop using the account. JPMorgan did not comply. Eventually, the account was drained of all but $100, just enough to keep the account open. Then JPMorgan made its own novel legal move. The estate, as administered by the bank, took out a loan, from JPMorgan, for more than $900,000. The bank, in other words, loaned itself money, indebting the estate in the process.<p>Wow, just wow. Usually when I read articles about an investment bank doing something dodgy, I can play devil&#x27;s advocate and talk it through from their point of view. But this time I am struggling to do that. So many things were done that were not just morally wrong, but legally too. I struggle to believe there was no one at JP who didn&#x27;t point this out.

This is why it is so important to have a will and other documents (such as advanced directives) in order, and to make family members aware of all the arrangements.<p>There are all kinds of sharks in the financial and legal industry that prey on unprepared people.<p>I and people I know have been screwed by these types, and it always comes down to not having a will. If you don&#x27;t have a will, you&#x27;re subjecting those you care for to dealing with these sharks. Don&#x27;t do that to them.

The odd thing about this case is how there wasn’t anything unusual about the estate.<p>Heirs disagree all the time. That’s the point of hiring an independent administrator.<p>How could the bank have screwed this up so badly?

I wonder if it would be possible to have a clause in your will stating that if any family member sues any other family member, the whole lot goes to charity. Bonus points if you can get a legal professional to utter the words &quot;and you can all eat shit&quot;.

First world problems, 6700 putters and 900 bottles of fine wine.<p>That said, the bank behaved in a terrible way, but the most important takeaway is that if you have any wealth at all make sure you leave a properly signed and witnessed will.

And to believe this all started over a misunderstanding over airline miles.

&gt; Still, the verdict did generate some bad publicity for the bank.<p>And there goes the Streisand effect. $8B isn&#x27;t something the bank will take slightly, but the more this case is discussed, more people will hear about it and (probably) avoid hiring this bank in the future.<p>I don&#x27;t think this kind of service is a significant insource for the bank, but also think it should be much, much cheaper had the bank taken some care with this case.