
JPMorgan Chase CEO Jamie Dimon Why does he still have his job?
I thought that, given all the pervasive bank crimes over the last several years, we wouldn’t have a time when the roof appeared to cave in on the financial industry. But I’m getting that feeling today. All of the criminality and venality and greed seems to be coming to a head.
Take JPMorgan Chase, not but a couple months ago thought to be one of the most honest and scrupulous banks around. Just today, you can read about their disclosure of professional misconduct by traders in the Chief Investment Office trying to hide their Fail Whale losses, furthering that criminal investigation; a lawsuit over the bank pushing in-house proprietary funds on their clients, acting in the interests of their own bonuses rather than out of fiduciary duty to clients; and a different class-action lawsuit over the Fail Whale trades led by six pension funds, alleging false and misleading statements. Not to mention the resistance to giving officials documents about possible manipulation of the energy markets, which is a few days old. Michael Crimmins makes an excellent case that Jamie Dimon should be fired by his board for failing to maintain internal controls when the traders in the London unit hid Fail Whale losses. And this is all just one bank, which previously had a decent reputation!
Then there are the allegations from the new Senate Permanent Subcommittee on Investigations report on HSBC, Europe’s largest bank, showing how lax controls led to money laundering for Mexican drug cartels and terrorist financing entities, which isn’t even a new problem. But seeing it so clearly spelled out in a Senate report is novel:
The report into HSBC, released ahead of a Senate hearing on Tuesday, says huge sums of Mexican drug money almost certainly passed through the bank.
Suspicious funds from Syria, the Cayman Islands, Iran and Saudi Arabia also passed through the British bank [...]
Many of HSBC’s breaches of US anti-money laundering relate to its use of bearer share accounts. Under the rules for these accounts, ownership of shares and the income they incur can be passed from person to person in secrecy.
HSBC’s US subsidiary HBUS had opened more than 2,550 accounts for bearer share corporations.
The report, from SPSCI chair Carl Levin, also faults the regulators for their failures, but at this point that’s just par for the course.
And finally you have the Libor scandal, which I’ll detail in a separate post, but banks are girding themselves for more revelations there, preparing for thousands of lawsuits from community banks and in the case of the Royal Bank of Scotland refusing to turn over information in the case.
This is ONE DAY of headline-scanning on the banking industry. It does not come at a time where big banks are collapsing. This is the normal course of events in an era of no accountability, with greed and criminality having totally infested the system.




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I wonder what goes in these banks?
http://en.wikipedia.org/wiki/List_of_banks_in_the_United_Arab_Emirates
It’s been coming to a head for four years but the difference is that it is a presidential election year, and we had Occupy who forced the issue back to the forefront, politicians are scared and the media has decided not to ignore it all. It should have been at this level of alert since 2008.
But yes, it looks like some people are actually going to be held accountable. Who will be the token banker arrested as the October surprise?
So, you have to ask, when does all this criminality become a topic for the candidates, parties and media covering the campaigns? Seems fairly relevant for people wanting to run the government.
“…when does all this criminality become a topic for the candidates, parties and media covering the campaign?”
The candidates, the parties, and the media covering the campaign …
Ah yes, the three constituent “parts” of the USA’s TRADITIONAL political class.
Scarecrow, we must imagine that “class” is very interested in covering this … in covering it … up.
Why might that be?
As an aside, are the “alternative” candidates, the “alternative” parties, and the “alternative media” paying any attention to this topic?
If so, and we, here, think this topic deserves coverage, then what does that suggest?
Anything?
It OUGHT to be relevant to those who want to “run” the government … and one imagines that it is concerning and of “interest” to those people … although “evidence”, over more than a day, suggests that such “interest” is very different from that which which “we” are concerned with.
So, it is not merely a question of “when” it might, possibly, become a “topic” for “them” … but rather “why? it has not been so …?
The answer to that question, the “why”, if “who” is added to it … will give “us” an approximate answer as to “when” this “topic” will be worthy of “their” attention.
I see a whole new “field” of “speculation” now opening up.
Consider the derivatives … consider the co-mingled interests … why, the possibilities are virtually “endless”.
I suspect we could bank on it.
DW
Add to this mess that Little Timmy Geithner knew about the LIBOR manipulation for years and never said a word about it.
The lawsuits seem to be the only real way to get to these people, not one banker has even been charged with a crime and when there is some accountability required they just get out their check books and pay a damn fine with the money they scammed from someone else.
President Obama should sternly take very serious action.
He should ask that the cuff-links be returned.
That would show them.
DW
May I add the recent story of what Goldman-Sachs did to Dragon Software? Time for ‘heads on pikes’ IMHO. Nagahappen, however…
My first thought on HSBC is that it’s a CIA bank.
Who shorted facebook IPO?
Who was on other side of fail whale?
good questions this morning.
Wondered, too, re shorting of FB, but (and I know this sounds like bs) I figured something like that would happen bc the FB deal got such huge hype. I don’t know much about IPOs, but who *really* got screwed in that deal?? OR will the fat cats still come out ahead in the longer run?
My take on the FB IPO is that it was all Kabuki show done in some way to benefit the 1% investors. I’m sticking with that. Who did the manipulating is anyone’s guess. The Goldman Sucks? Jamie “Cufflinks” Dimon?
There’s starting to be open talk about the loss of a different kind of confidence than what the fairy is supposed to bring, i.e. the confidence that one is not doing one’s routine banking business with a crook. This article makes connections with the liquidity trap:
Interesting, but sad, story re the rip-off of the Dragon inventors. It’s a great piece of sw. The pirates at GS think they did “a good job,” which figures. Why shouldn’t they feel that way? They believe the benefits of their crooked theiving is their “due,” and as sociopaths, don’t give a shit about anyone else.
Good Q.
As has been reported before, approximately 1,000 individuals were prosecuted for the “Savings & Loan” scandal of hte 80′s. Sixteen Enron executives served time in federal prison.
I’ll be counting, but I’m still waiting.
That was the first thing I thought.
That is quite a cluster of treasonous financial activity.
I wonder where all of the Afghan heroin money moves since 94% of the world’s smack comes from a place we are occupying.
One would think?
Thank you, darms, for that link.
Well worth the read.
GS is certainly doing Dog’s “work”.
DW
Why does Dimon still have his job, asks the caption?!
Clive’s comment at #1 from the Naked Captialism article (very interesting, btw, thanks, Dayen) helps answer this question.
We all know that the president, rremember him, said “the banks did nothinbg wrong”.
One must wonder if he has changed his mniond anbd IF he is going to address this. After all it’s HIS attorney general, assuming we can every f8ind him, that is tasked with bring these criminals to justice.
“Justice”….do you guys chuckle like I do when you use that word?????
Well, not that patently false.
He wrote a memo…………TWO pages. /s
IPOs in all my years on Wall St. and in my casual observation since then have been to the purpose of enriching the precious few who got a portion of the IPO at its listed price, and the share price immediately goes up something like 10-25%. FB is the first time I have ever noticed that share price went down noticeably after the offer. And a very visible deal, so the whole thing sucks big time.
I asked a friend with a small money management firm what the rumors are about who shorted it and she told me there aren’t any rumors.
All the more reason to thing something is really rotten. At a minimum you would expect a myriad of false rumors.
“So, you have to ask, when does all this criminality become a topic for the candidates, parties and media covering the campaigns?”
When the candidates stop working for (ie stop being bank-rolled by) these criminals and not before. Or, when the government is no longer the shadow cast by business . . . ?
That would be just like Obama…”kick ass and take names.”
Good question. Really good question. If there was a loser, there had to be a winner.
If people lose faith in the banks, might it be a smart move to invest in mattresses?????
Anybody???
One of the interesting aspects of all of this lawlessness, is that the people committing it are morons. “Empire makes you stupid” has become one of my favorite sayings, and I typed it on Diner this morning while listened to Chris Hayes on democracynow arguing that it is the removal of 1%ers from ordinary people that is making institutions nonfunctional. Undoubtedly there’s a lot of that too but it’s much more malevolent.
If the crooks at the top are stupid, as I posit, why haven’t their mistakes gotten them into trouble yet?
Guess we’ll have to wait for the movie.
I think Justin Bieber should play ZUckerberg.
I can’t remember the guys name but I read a piece a while back that said he had been watching the Fail Whale transactions and saw something funny about it and pounced at the right time. He made bank on that deal. Pun intended.
Mattress Speculation.
Forget energy …
Food and Mattresses are the new hot speculative vehicles.
I heard that Toyota has a hybrid bedstead in the works, ngc.
Goes from wide-awake, depressed … to blissful “Murkan Dream” in four seconds flat!!!
And, you can use it as a toaster, too.
DW
If JPM lost $4 billion, someobody must have found it.
I thought about that wrt FB IPO, but it took presstv to point it out to me wrt fail whale.
If I remember the initial coverage, when I wasn’t paying close attention, lots of traders seemed to know about it. So it could be that the gains were spread over the myriads who knew what was going on.
WRT FB, I’d guess much more concentrated group.
I’ve been watching Sealy Posturpedic stock…………it’s up 4 since last week.
Yes, it’s that kind of thing I was referring to in 30. Your guy is one example of a whole bunch who knew about it.
Saw an article yesterday where some one is living in an old airplane, maybe a 737?
“The lawsuits seem to be the only real way to get to these people . . .”
Unless the interests and well-being of the owning class are impinged upon, unless they are directly, personally hurt, the status quo ante will continue, as you suggest. We should look to the politicians who work for the owning class, who owe their jobs to the likes of JPM and therefore serve their interests, to help out in this regard? The least the citizenry can do–for what it may be worth–is stop borrowing from these banks and stop giving them their money to gamble with.
Bruno Iksil?
Memory, old, … synapse, faulty … brain, soggy
Might be correct, Busted …
Wouldn’t bank on it, however.
DW
The Banksters own DC. Move on David, there is NOTHING to see here. Obomber has already declared them all innocent.
And, if I may add, they stay innocent as long as they cough up campaign contributions.
wink, wink, nod, nod.
More good questions. I’m not sure if the 1% crooks are “stupid,” but I think, like a lot of egotistical sociopaths, they are becoming “victims” to their own hubris. Because they’ve “gotten away with” massive fraud/stealing/looting/whatever, they are also starting to believe that they simply can do no wrong. Eventually – as Margaret often points out – their actions WILL come back to bite them in the butt. But the “eventually” appears to be quite some ways away. In the meantime, they will continue to behave in a stupid fashion because they can.
With Obama essentially pardoning them before they even STEAL from us, what’s to stop them from engaging in even more stupid, but avaricious, behavior? Greed ain’t listed as one of the Seven Deadly Sins for no reason… greed is one in-greed-ient for what makes them so stupid.
“The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863
“The eyes of our citizens are not sufficiently open to the true cause of our distress. They ascribe them to everything but their true cause, the banking system”
– Thomas Jefferson
“Advocates of capitalism are very apt to appeal to the sacred principles of liberty, which are embodied in one maxim: The fortunate must not be restrained in the exercise of tyranny over the unfortunate.”
-Bertrand Russell
“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” -John Maynard Keynes
“Fascism is capitalism plus murder.”-Upton Sinclair
The Hong Kong Shanghai Bank (HSBC) was founded on drug money from the opium trade in China in 1860. It is no wonder that they are still in that business.
Yeah. The question is, what’s the difference between then and now? Did they not bribe enough of the right politicians in the 80′s? Alternatively, has campaign finance “reform” now caused the pols to be captured to such a degree that the financial leeches can proceed with impunity?
Shorter Answser: Yes and yes.
I also think that with the amount of surveillance going on,
Perhaps, everyone, has a folder on everyone else.
former schoolmate of Dave Dayen’s. Dave did a post about it a few weeks ago.