Pam and Russ Martens at Wall Street On Parade have provided a handy summary of criminal activities and massive trading losses at America's riskiest bank, JPMorgan-Chase:
On top of an unprecedented criminal past under the tenure of Jamie Dimon . . . the bank has the dubious distinction of being called out as the riskiest bank in the U.S. by one of its federal regulators.
A quick survey uncovers mortgage fraud and massive losses gambling on derivatives:
Jamie Dimon was the Chairman and CEO of this bank during the financial crisis when there was an insider whistleblower holding a law license, Alayne Fleischmann, that testified to the U.S. Department of Justice that she had observeda massive criminal securities fraudinside the bank involving the bogus mortgages the bank had sold in the billions of dollars to investors. But instead of using that first-hand evidence to prosecute the bank, Obama's Justice Department under Eric Holder used that information to extract a large fine from the bank with no charges brought. . . . The Justice Department's settlement with JPMorgan Chase for what was clearly fraudulent conduct came just eight months after the U.S. Senate's Permanent Subcommittee on Investigations had released a 300-page report on the bank's use of depositor money inside its federally-insured bank to gamble in exotic derivatives in London, leading to losses of at least $6.2 billion.
Then there's money laundering for Ponzi-scammer Bernie Madoff:
The very next year, 2014, Dimon's bank was charged with two criminal felony counts for its role in handling the business account of Ponzi schemer Bernie Madoff for decades, looking the other way at glaring red flags of money laundering. Because of evidence uncovered by an independent trustee for a victims' restitution fund, the Justice Department had little choice but to bring the charges. The bank pleaded guilty to both charges. Jamie Dimon kept his job as Chairman and CEO.
Rigging foreign exchange markets:
The very next year, 2015, the Justice Department brought another criminal felony charge against the bank, this time for engaging with other banks in rigging foreign exchange markets. The bank pleaded guilty and — of course — Jamie Dimon kept his job as Chairman and CEO.
And, my personal favorite, racketeering charges using the infamous RICO statute typically reserved for organized crime:
On September 16 of last year, the Justice Department indicted two current and one former precious metal traders at JPMorgan Chase. As far as anyone on Wall Street can remember, it was the first time a trading desk at a big Wall Street bank was charged with running it as a racketeering enterprise and having its traders charged under the RICO statute, which is typically used to prosecute organized crime. According to Bloomberg News, the bank itself is now under a criminal probe in the matter, making it at least the fourth criminal probe in the last seven years.
Good to have a quick reference for the various crimes
(and the gentle remonstrations accorded by the
Through it all,
chairman Jamie Dimon emerges unscathed.
When the term
bankster needs a definition,
reach for JPMorgan-Chase!