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 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 21st, 2013 10:12 AM |
Does a $13 billion fine such as that levied against JP Morgan represent justice?
I was asked by my friends at Global Economic Intersection to weigh in on the following questions regarding this penalty seemingly so large as to be hard to fathom.
Is the reported settlement appropriate? Sufficient? Insufficient?
How many criminal charges would be appropriate? None? Operational management? Executive management?
If you believe the action by DoJ is appropriate, has it been timely?
Should there be similar action against other banks? (more…)
Posted by Larry Doyle on September 26th, 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? (more…)
Posted by Larry Doyle on August 15th, 2013 8:00 AM |
Can you imagine if instead of suspending Alex Rodriguez and others for the use of PEDs that Major League Baseball went after the clubhouse boy, who may have been perhaps knowingly delivering them “the stuff,” and presented that to the public as cleaning up the game?
Or, if we were to steal a scene from the fabulous flick Goodfellas, picture the Feds charging the young and impressionable Spider for his involvement — albeit as a barboy — in “the family” running rackets and presenting that to the public as one of the first cases to clean up the mob.
The authorities in either case would face a fair bit of ridicule. As well they should. (more…)
Posted by Larry Doyle on May 22nd, 2013 5:06 AM |
Little surprise that Jamie Dimon will remain as both CEO and chairman of JP Morgan.
Was there really any doubt? There wasn’t.
While shareholder groups might pretend they can exert influence over the management of large corporations and especially banks, there is little meaningful resemblance to a democratic process in proxy voting.
Posted by Larry Doyle on May 6th, 2013 8:12 AM |
If those in my beloved hometown of Boston “love that dirty water,” then similarly current management at my last stop on the sell side of Wall Street, that being JP Morgan, seem to ‘love that dirty money.‘
The filth and stench surrounding this story runs so high as to have recently influenced JPM’s bedmates — er, I mean regulators — to pronounce that they do not trust JP Morgan management. Wow. That’s saying something.
We know that only 1 in 5 in America trust our banks (down from 1 in 2 a mere 5 plus years ago), but for regulators to now voice their distrust in JPM’s management is a cry from the bedroom not often heard. What’s going on at JPM? Let’s navigate. (more…)
Posted by Larry Doyle on March 15th, 2013 6:17 AM |
It is not often that an industry insider unleashes a report on a major financial institution that makes me sit up and immediately think, “I need to share this . . . . NOW.”
Well, I just sat up.
If you have any doubts that our “too big to fail” banks are out of control and hence “too big to regulate” and “too big to prosecute,” you will want to read a report written by Graham Fisher’s Josh Rosner.
I can assure you this report will generate a lot of focus from even the generally compliant financial media. I thank the friend of Sense on Cents who brought it to my attention. I recommend you put your coffee down as Rosner writes, >>>>> (more…)