In yet another disgusting episode of "Too Big to Fail," this time from the NYT:
"Government investigators have found that JPMorgan Chase devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” and that one of its most senior executives gave “false and misleading statements” under oath."
Yes, we're all shocked...again.
"The findings appear in a confidential government document, reviewed by The New York Times, that was sent to the bank in March, warning of a potential crackdown by the regulator of the nation’s energy markets."
What's with the secrecy? As if we don't know that we're being screwed by the banks.
"The possible action comes amid showdowns with other agencies. One of the bank’s chief regulators, the Office of the Comptroller of the Currency, is weighing new enforcement actions against JPMorgan over the way the bank collected credit card debt and its possible failure to alert authorities to suspicions about Bernard L. Madoff, according to people who were not authorized to discuss the cases publicly."
Suuuure they are.
"In a meeting last month at the bank’s Park Avenue headquarters, the comptroller’s office delivered an unusually stark message to Jamie Dimon, the chief executive and chairman: the nation’s biggest bank was quickly losing credibility in Washington. The bank’s top lawyers, including Stephen M. Cutler, the general counsel, have also cautioned executives about the bank’s regulatory problems, employees say."
Good Lord. A banker losing credibility in Washington! I'm shocked that Jamie Dimon has any credibility left to lose.
So, what exactly is the Big Bank in trouble for this time?
"In the energy market investigation, the enforcement staff of the Federal Energy Regulatory Commission, or FERC, intends to recommend that the agency pursue an action against JPMorgan over its trading in California and Michigan electric markets."
"The 70-page document also took aim at a top bank executive, Blythe Masters. A seminal Wall Street figure, Ms. Masters is known for helping expand the boundaries of finance, including the development of credit default swaps, a derivative that played a role in the financial crisis."
"The regulatory document cites her supposed “knowledge and approval of schemes” carried out by a group of energy traders in Houston. The agency’s investigators claimed that Ms. Masters had “falsely” denied under oath her awareness of the problems and said that JPMorgan had made “scores of false and misleading statements and material omissions” to authorities, the document shows."
The regulators are "looking at" one of the role-players in the Great Recession...she got away with her actions then, why would we think she won't get away with them this time?
"In the credit card investigation, people briefed on the case said the comptroller’s office had discovered that JPMorgan was relying on faulty documents when pursuing lawsuits against delinquent customers. The accusations, which are expected to prompt an enforcement action later this year, echo complaints that JPMorgan and rivals plowed through home foreclosures with little regard for accuracy."
Um, "Standard Operating Procedure."
"In a separate investigation into JPMorgan’s relationship with Mr. Madoff, the comptroller’s office raised concerns that the company may have violated a federal law that requires banks to report suspicious transactions. Eventually, the people said, the agency could reprimand the bank for the potential oversight failures."
"May have," why is there always some sort of "gray" area when it comes to whether or not laws have been broken by the Big Banks? Yes, that's a rhetorical question.
Really, all we need to know is yes, JPMorgan Chase is pulling another fast one, two, or three, and this:
"It is unclear whether the agency will file an action against JPMorgan based on the investigators’ findings. A majority of the five-member commission must first endorse the case. If the regulator does proceed, it could fine the bank and Ms. Masters."
"Mr. Dimon, who is not suspected of any wrongdoing, met this week with prosecutors and the F.B.I. to discuss the case, two people briefed on the investigation said."
If anyone does anything it will just be another fine that is laughable compared to the bank's profits, and once again, the shit slides right off Jamie Dimon's teflon suit.
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