Posted by Larry Doyle on August 12th, 2014 11:46 AM |
In early January of this year, JP Morgan was hit with a $2 billion fine and a deferred prosecution agreement for its failures to properly manage and monitor its 20-plus year relationship with the Sultan of Swindle Bernie Madoff.
In my opinion, that settlement had little meaningful correlation with what most in our nation would define as justice. I wrote as much in my commentary, JP Morgan – Madoff: Lots of ‘CYA’ But Little ‘KYC’.
After this settlement was finalized, I can only assume that many of the folks at FINRA, the SEC, DOJ, SIPC (Securities Investor Protection Corporation), and certainly JP Morgan exhaled a welcome sigh of relief to see the JPM-Madoff affair fading into the rear view mirror.
Not so fast!! (more…)
Posted by Larry Doyle on January 8th, 2014 7:46 AM |
Oh what a tangled web we weave when first we practice to deceive.
All too often we have heard senior level individuals from an array of financial institutions and regulatory agencies say that they too were deceived by the master swindler Bernie Madoff.
That sort of lame excuse might work for a naive young teenager duped by an online scam artist trying to make a quick buck. It certainly does not and should not hold any water for senior level bankers running an institution like JP Morgan. Why is that? (more…)
Posted by Larry Doyle on December 12th, 2013 10:20 AM |
News breaks this morning that JP Morgan, Bernie Madoff’s lead banker, is close to settling with the Feds under a seldom used deferred prosecution agreement.
What is that?
Think of it as the equivalent of: You guys and gals had better behave yourselves going forward or we’re going to need to revisit this! Truth be told, a deferred prosecution agreement is tougher than the standard “neither admit nor deny” treatment accorded Wall Street banks. How so? It “lists the bank’s criminal violations in a court filing but stops short of an indictment as long as JP Morgan pays the penalties and acknowledges the facts of the government’s case.” Let’s revisit the Madoff trustee’s lawsuit brought against Morgan from early 2011. >>>>>>>>>>>>>>>>
Posted by Larry Doyle on December 11th, 2013 8:46 AM |
For five years America has been fed a line of bull$h!t that absolved the regulators at the NASD and its offspring at FINRA from their oversight responsibilities in the operation that encompassed Bernie Madoff’s Ponzi scam.
I never believed it for a second when regulators and assorted sycophants said that Madoff’s broker-dealer operation was fully separate and distinct from the Ponzi scheme.
I challenged former SEC chair Harvey Pitt in September 2009 when he tried to provide cover for the NASD/FINRA on its oversight and responsibilities related to Madoff. (Those interested can review that engagement and a lot more on the 20-minute video within this commentary.)
Posted by Larry Doyle on November 6th, 2013 10:27 AM |
How did Lehman Brothers CEO Dick Fuld escape the clutches of justice while steering his firm right into bankruptcy? He played the card that many Wall Street execs have played over the last 5 years.
Fuld and other Wall Street execs maintained that the regulators were right there in their offices — or perhaps more aptly described, “in bed with” them — so if the brakes were not applied to what they were doing, then how can they be held accountable. Hell, it worked for Fuld et al so why not keep playing the card, right?
Posted by Larry Doyle on October 24th, 2013 6:24 AM |
Unlike the token fines — akin to mere parking violations — that the American public has seen imposed on Wall Street to date, the DOJ now seems to want to regain some degree of credibility by writing up the major Wall Street banks for some speeding tickets.
The widely publicized but yet consummated $13 billion fine expected to be paid by JP Morgan is proposed as a template for similar fines likely of a smaller magnitude to be paid by other banks.
An outlier in this imposition of fines as being little more than a cost of doing business occurred yesterday when a jury returned a guilty verdict in a civil case brought against Countrywide (now a division of Bank of America) for fraud in the sale of mortgages to Fannie Mae and Freddie Mac. This case is an exception rather than the rule but recall that it is a civil disposition and not a criminal proceeding.
Returning now to our regularly scheduled broadcast, we awake this morning and see that JPM is back in the news with the Feds talking about imposing a penalty on Jamie’s bank for its involvement with the Madoff scam. (more…)
Posted by Larry Doyle on October 7th, 2013 10:30 AM |
Close to 5 years after Bernie Madoff turned himself in to authorities for running the largest acknowledged Ponzi scheme on Wall Street, America still knows little as to what truly transpired within those offices in the Lipstick Building on 3rd Avenue in midtown Manhattan.
Do you find it decidedly suspicious that the government has not brought the case against assorted individuals in Madoff’s operation for close to 5 years? I do.
Recall that none other than Harry Markopolos said that it took him little more than 5 minutes to know that Madoff was running a Ponzi scam.
Has the government employed stall tactics in just now bringing this case to trial so as to protect itself and its friends on Wall Street fromg its failures to properly regulate Madoff’s operation and protect investors? How so? (more…)
Posted by Larry Doyle on June 5th, 2013 1:19 PM |
I try not to write about those who have committed financial crimes and especially after they have been put away.
I figure why should I give a crook or his comments any of my time or any degree of credibility. To that end, I have welcomed highlighting the ineptitude and corruptible behavior of our financial regulators in dealing with financial crooks while staying away from commenting on the crooked scumbags themselves.
Today I take a break from this discipline as perhaps the largest POS of all, that being Bernie Madoff, made a statement that is deserving of a response. What did this slimeball have to say in the midst of a discussion with a reporter from MarketWatch? (more…)
Posted by Larry Doyle on January 4th, 2013 11:57 AM |
Four years after the fact and America still does not know what really transpired within the Madoff scandal. Who knew what? Who did what?
Are we supposed to believe that only Bernie and a few other miscreants within his web perpetrated this scam unbeknownst to others on Wall Street and within the halls of our financial regulators? That premise would take the definition of naivete to an exceptionally elevated level.
What other entities benefited from feeding off Bernie Madoff? Well, if we needed to rely on the likes of JP Morgan, we will seemingly never learn that info and likely more. Why is that? (more…)