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Poll: Is an $11B Fine The Right Justice for JPM?

Posted by Larry Doyle on September 26, 2013 8:56 AM |

The rap sheet that has developed on JP Morgan over the last few years might have made John Gotti proud.

But remember, even though the Teflon Don escaped justice for a long time, ultimately the Feds caught up to him and he spent his last days listening to this.

Oh how the Don wishes he could have been a Wall Street banker rather than in the carting business and other organized activities. If so, he probably wishes he could be Jamie Dimon. Why so? 

Jamie and the folks at JP Morgan are now hoping to leave all their troubles behind by putting in wall to wall carpeting to cover up all the dirt of numerous and sundry transgressions. What might be the cost of this plush carpet?

Jamie hoped that he could shop at the discount store and buy a $3 billion carpet to cover all the dirt. The rug merchants feigning appearance as regulators seem to have informed Jamie that, given his Mcmega-bank, he really needs a larger, thicker, and more expensive carpet, the price of which is more in the $11 billion range.

Given that money flowing into JPM from the Fed window comes with a cost of 0%, is a rug (er, I mean a fine) even of $11 billion the appropriate form of justice for this institution?

Might one think that the American taxpayers subsidizing JPM might want to not only know all the details of the dirt in the house but also who was responsible for it and who will be held personally and professionally accountable?

I would like to know how you believe justice should be delivered in this case. Should heads roll? Should regulators aerate the JPM house and provide a public expose documenting all the dirt?

If an $11B wall to wall carpet is rolled in, how are we ever to know that the dirty behaviors might ever change?

Comments encouraged and appreciated.

Larry Doyle

Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.

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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Peter Scannell

    “It’s the tone at the top,” observed former SEC Enforcement Director Stephen M. Cutler when explaining his reasons for prosecuting duplicitous management.

    Now that he has been JP Morgan Chase’s top legal and compliance officer since February 2007, his words should come back and show him the door.

    How can JP Morgan ever redeem itself with Cutler still at the helm?

  • Barry

    Send for Ferdinand Pecora!

  • James

    Hey Larry-

    I like the angle of your article!

    What we REALLY NEED is for there to be someone that specializes in Carpet Cleaning to come in with lots of hot water, good pressure and give it a good ole fashion deep cleanse.

    Then put it out there in the open for some good ole sunlight to dry things up.

  • CMB

    I worked at this bank for many years.

    It was a great place to work until Bank One and Jamie Dimon came along. So sad!

    • LD

      Pursuit of profit at all cost leads to some pretty big costs. But given JPM’s position in the marketplace they clearly want to take advantage of their dominant market share. I personally think these banks should be broken up.

  • STB

    No not at all.

  • Mike

    Hi Larry, what really needs to happen is one CEO or other bigshot (not some low level minion) to do some jail time for the assorted frauds. As long as it only comes down to fines it’s just a cost of doing business, no matter how large the fine; they probably make it back in a few weeks and given all the creative accounting in use find a way to write it off their taxes to boot.
    Send a couple of these fraudsters to Club Fed and I bet that would finally send the message that brings this BS to a flying stop.

  • john

    A fish rots from the head. Whatever the fine is it’s all just theater for the masses. To entertain us while the government, the Fed and wall street continue to confiscate the wealth of the nation

  • Mark J. Novitsky

    NO! We have more rights and protections for those who commit financial / corporate fraud than adequately protect the victims OR sufficient in any way to act as an actual CRIMINAL deterrent. — EXPECTING TO GO TO JAIL WITH CLAWBACKS IS A WHOLE LOT CHEAPER THAN CONSTANT BAILOUTS AND PLANNED SYSTEMIC CRISIS / FAILURES. Baron Rothschild: Best time to buy is when there is blood in the streets. – ALSO… any “fines” / “Cost of Doing Business” should NOT be tax deductible. Makes sense if you don’t think about it…The same people that lost money then pay the fine of the crooks then pay again for the tax break!

  • This amount is an additional insult to the people with Trillions of dollars of theft by JP Morgan and Jamie Dimon. I vote no this is not even close to enough.

  • JS

    Yet we talk a big moral self righteous game, this generation has a real serious problem with responsibility. Seems every malady can be converted to dollar bills and thus wash away the sins of the world only to be repeated.

    Until a societies recognition of such grand hypocrisy (coverups) being the farce they are, nothing can or will change.

    This “moral compass” our slick talking creepy leaders speak of is one of self serving indulgence and and greed.

    Until they are put on the stand and respond to the issues and charges with public humiliation at the ready this conversation will continue.

    In short, any wayward company that has received public funds for what ever reason, should have it’s leadership (Board of Directors & Sen mngmt) held on criminal charges.

    We should start w/congress & the white house

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