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A Not At All Shocking Development In The JPMorgan Settlement - Charles P. Pierce

Business  (tags: abuse, americans, banks, corruption, crime, culture, dishonesty, ethics, government, law, media, politics, rights, safety, society )

- 1895 days ago -
Sure, the top officials at JPMorgan didn't know anything about what good old Bernie was up to, and they knew very little about the other forms of brigandage that have come to light.


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Kit B (276)
Wednesday January 8, 2014, 7:55 am
Photo Credit: Bernie Madoff - Stan Honda/AFP via Getty Images

Back in the old newspaper days, we used to call something like this a "follow-up." That was before the country developed the attention span of a gnat, and before history became defined as whatever came in over your BlackBerry 10 minutes ago. Remember yesterday? (Trick question.) We talked about the settlement that the government had come to regarding JPMorgan's performance as Sergeant Schultz in the Bernie Madoff scandal? We posited the notion that the bank's wrists were going to stop stinging fairly quickly.

Call us Kreskin.

----Yet JPMorgan's shares are up 28 percent over the last 12 months. Wall Street analysts estimate that it will earn as much as $23 billion in profit this year, more than any other lender. And JPMorgan's investment bankers, who on average earned $217,000 in 2012, can look forward to another lush payday as bonus season approaches. "The fines have been manageable in the context of the bank's earnings capacity," Jason Goldberg, a bank analyst at Barclays, said. "It makes $25 billion in revenue per quarter and has record capital."---

I'm so very happy for all of you, now that we know you won't be using any of those "lush" bonus paydays on lawyers.

----One reason that JPMorgan can absorb the $20 billion is that it has steadily set aside reserves over the last few years to finance future legal payouts. Mr. Goldberg, the bank analyst, estimates that, as of last year's third quarter, JPMorgan had injected $28 billion into its legal reserves since the end of 2009. The legal payouts that have been subtracted from the reserves, including those booked since the third quarter, might have taken the reserve down to about $10 billion. Most analysts expect JPMorgan will be able to cover any remaining settlements, though the bank said on Tuesday that it might have to set aside an extra $400 million for the Madoff settlement.----

In other words, the top officials at JPMorgan -- Hi, Jamie! -- didn't know anything about what good old Bernie was up to, and they knew very little about the other forms of brigandage that have come to light since this bank and its fellow chop-shops were looting the national economy -- Mistakes were made! -- but they just happened to lay up $28 billion just in case somebody noticed what they were doing.

Somebody was reading The Ant And The Grasshopper as translated by Machiavelli.

----The action describes how the chief risk officer of JPMorgan's investment bank allowed the bank to increase its financial exposure to a Madoff entity in 2007 to $250 million. The risk officer had spoken with Mr. Madoff but approved the increase even though Mr. Madoff appeared to make it clear that he would not answer more probing questions about his firm. The government's action says that the risk officer understood that Mr. Madoff "would not authorize any further direct due diligence of Madoff Securities." The risk officer, John Hogan, still works at JPMorgan as chairman of risk. "Our senior people were trying to do the right thing and acted in good faith at all times," Brian J. Marchiony, a JPMorgan spokesman, said in a statement. The bank also said, "We recognize we could have done a better job pulling together various pieces of information and concerns about Madoff from different parts of the bank over time." ----

"Yeah, but fk that, amirite? We were all making so much dough who had time to notice what Bernie was doing over in the corner. Hey, we said, what's Bernie doing over in the corner with that funky math of his? And everybody was, like, don't worry, we have shitbag mortgages to sell. Besides, we had laid up almost $30 billion to pay off the suckers, and the government, but I repeat myself."

The obvious solution, of course, is to break these big bastards up and re-regulate them along the lines proposed by Senator Professor Warren. Otherwise, the golden fleecing of the American economy goes on and on.

By: Charles P Pierce | Op-Ed | Esquire Magazine |

Sue H (7)
Wednesday January 8, 2014, 8:47 am
My blood pressure just went up. Ggrrrrr

Roger G (148)
Wednesday January 8, 2014, 11:51 am
noted, thanks

Lois Jordan (63)
Wednesday January 8, 2014, 2:20 pm
Noted. Thanks, Kit. Enough to make your blood boil. One of the banksters even stated that they were "doing god's work." Just sick. Warren & McCain (surprise!) have a bill to rein in the banksters, but I don't know how far along it is. Although one way of thinking is that if you give them enough rope, they'll hang themselves.....but these greedy s.o.b.s just keep making more rope. So, we will have to (figuratively) wrap it around them until....well, you know.....

Arielle S (313)
Wednesday January 8, 2014, 2:24 pm
Of course, they knew nothing about Bernie.... that's why they get paid the big bucks, because they are so very knowledgeable and intelligent.... "Doing God's work", huh? If I was God, they'd all be struck by lightening by now.

Birgit W (160)
Wednesday January 8, 2014, 2:34 pm
Noted, thanks.

Mary Donnelly (47)
Wednesday January 8, 2014, 3:30 pm
Thanks Cal and Kit. What's going to happen now. Madoff is in jail; why are many more?

Barbara K (61)
Wednesday January 8, 2014, 3:41 pm
Geez, I hope they all get what they deserve in one way or another. They belong in jail.

Past Member (0)
Wednesday January 8, 2014, 3:59 pm
Did they question Rockefeller, the man who owns controlling shares in JP Morgan/Chase?

JL A (281)
Wednesday January 8, 2014, 4:50 pm
when will the worm turn on this one as much as my stomach does in response to it?

linda g (3)
Wednesday January 8, 2014, 7:50 pm
Actually, not surprised JP Morgan set monies aside to cover Bernie's and others legal fees. They play in ahigh s takes arena.

Diane K (134)
Thursday January 9, 2014, 9:26 am
Noted. thanks

Danuta W (1251)
Thursday January 9, 2014, 9:53 am

Angelika R (143)
Thursday January 9, 2014, 12:47 pm
same old, same old--goes on..and on..and on-anyone surprised? Jamie-think about suicide, please!

Sheila D (194)
Thursday January 9, 2014, 1:33 pm
Strange that as much as the GOPTP are aginst LGBT anything, that they seem to spend an inordinate amount of time in bed with the CEOs and other Big Wig Baddies...usually of the same sex.

Kamia T (89)
Thursday January 9, 2014, 3:06 pm
You know what's sad about this whole ugly mess. Remember what happened to all the supposed untouchable royal families who were incestuous in Europe? Everyone ended up dying because of problems. That's what's eventually going to happen with Wall Street, crooked politicians and regulators who can't or won't regulate. Unfortunately they'll probably take us all down with them.

Alicia N (87)
Thursday January 9, 2014, 3:35 pm

Theodore Shayne (56)
Thursday January 9, 2014, 3:48 pm
They all might think they've gotten away with it but when they cross over to the other side and have to answer for what they've done; it will be a different story. I know; I once was one of them and didn't live up to what I was supposed to and how I was supposed to live and manage great wealth. In this life which I returned to I still have rich man's tastes on a beer budget but I have learned how to be happy in all things. For me it is no longer about the money and the material things; it's about developing knowledge; the power of thought and spiritual maturity and responsibility. I don't want to have to return again.
Enjoy it while you can all you wealthy people. Reality is a far stranger thing than you can imagine.

Kerrie G (116)
Friday January 10, 2014, 3:53 am
Noted, thanks.

Craig Pittman (52)
Friday January 10, 2014, 6:19 am
No surprises here AND the taxpayers will be bailing out the financial industry again next time. Some things don't change. You are right Kit, we (the collective we) do tend to have the attention span of a gnat.
Thanks for bringing this story forward Kit.

marie C (163)
Friday January 10, 2014, 5:06 pm
Noted thanks for sharing Kit

Colleen L (3)
Friday January 10, 2014, 9:12 pm
When will it ever end? Hope all that are guilty, pay for their sins. Thanks Kit
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