If we had a functioning legal system, the top people at JPMorgan would have been indicted long ago. Instead the company pays fines for offenses that most of us would go to prison for. The government fines them, the company promises to be good, and nothing changes. This cynical and pitiful charade is little more than a protection racket. The banks do whatever they want. the government pretends to be vigilant, then fines the banks instead of filing criminal indictments.
“The bank connected the dots when it mattered to its own profit but was not so diligent when it came to its legal obligations,” Manhattan U.S. Attorney Preet Bharara said at a press conference.
Here’s some dots to connect, Mr. Bharara. Criminal behavior requires criminal indictments. Anything less is simply proof of a captured government and incompetent or worse prosecution.
The Justice Department refusal to criminally prosecute banksters is little more than a protection scheme. The banks pay stiff fines and promise to sin no more, no one goes to prison, and the banks continue breaking the law
A jury found a Bank of America unit and executive liable for mortgage fraud. You might think $165 million of fraud would put someone in prison, but you’d be wrong.
JPMorgan will pay the government $13 billion for misleading mortgage practices but again, Justice is doing nothing tacky like filing criminal charges against those responsible. It’s just so much easier to fill the coffers with the bankster’s ill-gotten gains instead, something which is also known as bribery. If they went to prison and the criminality stopped, then there would be no more government income from the fines. And they can’t be letting that happen.
So far, no high level banksters have gone to prison for their roles in the financial fraud and collapse. Thousands of bankers went to prison during the S&L scandal of the 1980’s. The feds are finally making noises about filing criminal charges. But these must be against people and not just against the corporations. We will begin to have Rule of Law again when elegant thugs in boardrooms like those at JPMorgan get frogmarched to prison.
Glencore Xstrata and JPMorgan Chase & Co face a U.S. lawsuit alleging they artificially inflated aluminum prices and disrupted supplies, as legal challenges related to metal warehousing piled up this week.
JPMorgan Chase & Co. is negotiating the final terms of a deal with the Securities and Exchange Commission to close the regulator’s yearlong investigation into a derivatives bet that led to the bank’s largest trading loss ever, according to two people briefed on the talks.
Estimates of the JPMorgan trading loss continue to climb. This is the very same JPMorgan who originally said losses were $1.5 billion or so and whose CEO Jamie Dimon used to preen arrogantly about how they had the best risk managagement of any investment bank.
Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.
Let see, if you engage in insanely reckless speculation, lose money then have no freaking clue how much you’ve lost, then I’d say your risk management was nonexistent.
“Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.
This is the sorry crux of the matter. Federal oversight of the banks also is also mostly nonexistent, else why did they allow JPMorgan to play the slot machines with depositor and bailout money. I mean, at least slot machines bets are understandable. The disastrous JPM London trade was so convoluted and complicated that maybe no one really understands it.
Banks should not be allowed to do this with depositor money. And until Bill Clinton and Tom DeLay presided over the repeal of Glass-Steagall, banks weren’t allowed to. Of course all the bloated parasites involved in this mess made fat commissions so why should they care what happened? (However the JPM trade is so egregious that the bad PR will force JPM to clawback some of the money but this is just window dressing.)
Our investment banks for the most part are corrupt, venal, and most probably insolvent. They should be put out of their misery so new, healthy institutions can replace them. If we had actual capitalism, this would have already happened. Instead we have a compliant and captured government continuing to prop them up.
Obama is of course mute when it comes to criticizing the banksters, especially when it involves an old pal like JPMorgan CEO Jamie Dimon.
Dimon, in his comments on Monday, said the bank wasn’t going to keep updating everybody on its losses.
That means the losses are huge. Will anyone in the government or Congress actually do something about this vaporizing of customer money by insanely reckless banks? We need real investigations. But I doubt we’ll get them. The fix is in far too deep for that.
However, governments andÂ institutions that are both corrupt and incompetent often do have a way of crumbling, and of course outside forces sometimes do it for them.