In Bank Fraud, Responsibility Lies at the Very Top

By: Friday December 14, 2012 6:59 am

The Office of the Comptroller of the Currency, which under the direction of Thomas Curry has been moderately more tough-minded against the banks, released a report that essentially admits that the big banks are poorly managed and have inadequate risk management controls. As Yves Smith points out, this means that the executives need to go [...]

JPMorgan Chase Still Trying to Blame Individuals For Fail Whale-Related Fraud

By: Wednesday October 31, 2012 11:29 am

JPMorgan Chase has sued the former manager of Bruno Iskil, the “London Whale” who executed the “Fail Whale trades” that cost the company as much as $7 billion. Javier Martin-Artajo was the direct supervisor to Iskil in the Chief Investment Office in London. The lawsuit, which was filed in a London court, did not disclose [...]

Yesterday Was “Relieve Goldman Sachs of Their Legal Exposure” Day

By: Friday August 10, 2012 6:20 am

I mentioned yesterday that Goldman Sachs got a rare “reverse Wells notice” from the SEC, when they were told that a mortgage-backed securities deal which they earlier heard they would face prosecution for would not net them any civil enforcement. But that was just the beginning. Later in the day, they learned they would not [...]

Dimon to Be Contrite Yet Steadfast in Senate Banking Testimony

By: Wednesday June 13, 2012 5:30 am

JPMorgan Chase CEO Jamie Dimon faces the Senate Banking Committee in a two-hour hearing scheduled for 10am ET today. He’ll be the only witness. Keep in mind that Dimon’s JPMorgan Chase has given millions to top-ranking members of the Banking Committee, so anything more than headline-grabbing and grandstanding without a real challenge to Dimon in [...]

Volcker Rule Tightening Just the Beginning of a Financial Reform Strategy

By: Tuesday May 22, 2012 8:20 am

The Fail Whale trades showed that massive, as-yet unregulated risk still exists in our financial system, with the potential to bring down the economy once again and trigger massive taxpayer bailouts. Since the Administration already passed a law that was supposed to deal with that, they’re scrambling to restore what little of value existed in [...]

As Fail Whale Losses Expand, Obama Administration Looks to Tighten Volcker Rule

By: Thursday May 17, 2012 9:35 am

As I noted earlier, the $2 billion “Fail Whale” trade has morphed into a $3 billion loss – and counting. The trade is still being unwound, so we aren’t yet sure about the final losses. What we do know more today is about the massive size of the trade: “They were caught short,” said one [...]

Why Worry About New Regulations When We Don’t Enforce the Old Ones?

By: Monday March 29, 2010 2:27 pm

You can tell that financial reform will be the next heavy lift in Washington because everyone’s chattering about it today, and proposing a variety of solutions. But they actually come down to something a lot simpler than what’s being proposed: regulators need a few clear rules, and they need to do their jobs. Mike Konczal [...]

Cramdown Poised For A Comeback?

By: Tuesday December 8, 2009 4:00 am

Earlier this year, the House of Representatives passed a bill that would allow bankruptcy judges to modify the terms of loans on primary residences, the same way they can on secondary residences or yachts (no, really). The “cramdown” provision, seen by many liberal economists as the only way to deal with the foreclosure crisis, then [...]

Why Is Timothy Geithner Rejecting Legislative Policy?

By: Tuesday November 10, 2009 12:34 pm

Over the weekend, the G-20 held a summit on the financial crisis, and several nations put forward the idea of a “Tobin tax,” a fractional tax on international financial transactions, to help pay for economic recovery and future bank failures. Germany, France and now Britain have all endorsed the idea. Timothy Geithner, speaking for the [...]

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