Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend  
Printer Friendly Page Save As Favorite Save As Favorite View Article Stats
7 comments

OpEdNews Op Eds

Crime Doesn't Pay? JPMorgan Chase Begs to Differ

By (about the author)     Permalink       (Page 1 of 2 pages)
Related Topic(s): ; ; ; , Add Tags Add to My Group(s)

Must Read 3   Valuable 3   Supported 2  
View Ratings | Rate It

Headlined to H1 1/26/14

opednews.com

Source: Common Dreams


JP Morgan CEO Jamie Dimon.
(image by (Photograph: Karen Bleier / AFP / Getty Images))

 
What do you give a Wall Street CEO who has presided over a decade of fraud and criminality, who directly supervised a unit which lost $6 billion through incompetent and illegal trading, and whose reign of crime and mismanagement has cost his institution $20 billion in the last year alone -- a figure which undoubtedly would've been much larger in a less morally compromised  regulatory environment?

If you are the Board of Directors of JPMorgan Chase, you give him a raise.

Let's not mince words: Jamie Dimon's bank is, as we said last May, the scandal of our time. The crimes committed during Dimon's time in senior management include bribery, mortgage fraud, investor fraud, consumer fraud, credit card fraud, forgery, perjury, violation of sanctions against Iran and Syria, violation of laws prohibiting the bilking of active-duty service members ... shall we continue?

The Captain and Tennile are getting divorced. But when it comes to the Board and Jamie, love will keep them together.

It's true that Dimon is no longer publicly described as "the President's favorite banker," presumably as a result of these scandals. Nevertheless, the Chase capo continues to be flattered and defended by a number of embarrassingly sycophantic journalists in the major media. The New York Times is a particular hotbed of Dimon-submissiveness; see, for example, Andrew Ross Sorkin's acquiescent, tummy-revealing and altogether kitten-like desperation to please the higher-order alpha mammal Dimon in this piece.

Regulator William K. Black Jr. played an integral role in the prosecution and conviction of more than 1,000 bankers over the savings-and-loan scandal of the 1980s. Black, who is now a top economics professor, is understandably disturbed by the fact that there has not been a single prosecution of the major Wall Street executive over the much larger scandals which led to the 2008 financial crisis.

Black observed this week  that the bank's fraud proceeds "went largely to the senior officers and directors of JPM, Bear, and WaMu in the form of bonuses." The Board's behavior can therefore be seen as a divvying up of criminal booty, whatever the personal involvement of the Board members themselves.

Black also pithily notes that "the greater JPM's frauds under Dimon's leadership ... the greater Dimon's value as a negotiator in getting the government to settle cheap." The directors confirmed that, if unwittingly, by noting that JPMorgan Chase's stock price has risen over the last 12 months.

Stock prices are based on expectation. As Dimon made it clear he could negotiate cheaper settlements with the government than expected -- that is, settlements that were less fair toward the banks victims -- the stock market rewarded him for his ability to manipulate the political and regulatory system on behalf of his own fraudulent bank.

Fraud isn't the sum total of JPMorgan Chase's business plan. But with this move, the bank's directors have made it clear that fraud is inseparable from its business plan.

Bank executives haven't been held liable for Wall Street crime. They haven't been prosecuted, which means they haven't been held criminally liable. They haven't been personally fined, which means they haven't been held financially liable. They've all been allowed to keep criminally-obtained wealth. And, outside of grassroots outrage like the Occupy movement, they haven't even been held  morally or socially responsible for their misdeeds. Public rebukes or shaming have been rare.

To be sure, Dimon is one of those executives who is hyper-sensitive to even the slightest criticism. Like the Jimmy Cagney character in some old mobster movie, he is both rapacious and vain. That's why we described him as the "emo executive" more than three years ago. It's also why he has invested large sums of his shareholders' money, and large chunks of his own time, to a relentless PR campaign designed to make him look like the victim of unfair criticism.

Unfair? The most generous interpretation of Dimon's tenure -- one which becomes harder and harder to defend as time passes -- is that he is an incompetent manager who is incapable of ending the crime spree within his own organization, no matter how much he may yearn to do so.

He's also apparently incapable of returning the money that crime spree deposited in his bank accounts.

"After losing billions," reads the headline in TIME, "JPMorgan Chase Gives CEO Jamie Dimon a Raise."

Well, of course. The billions that the bank lost through Dimon's blunders pale beside the billions it collected from his ... what shall we call it? His oversight. The law has not asked Jamie Dimon or any other bank CEO to return his personal share of the loot. Despite the principles of governance which are supposed to drive public corporations in this country, is now clear that their boards will not ask them to do it either.

Next Page  1  |  2

 

http://www.huffingtonpost.com/rj-eskow/the-dumbest-bipartisa

Host of 'The Breakdown,' Writer, and Senior Fellow, Campaign for America's Future
Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

How to Fix the Fed: Dismiss Dimon, Boot the Bankers, and Can the Corporations

The Top 12 Political Fallacies of 2012

Pawn: The Real George Zimmerman Story

What America Would Look Like If Libertarians Got Their Way

"F" The Bureaucracy! The White House Can Help Homeowners Right Now

The Price of Evil at JPMorgan Chase

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
4 people are discussing this page, with 7 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Thanks for this well written article Richard. I h... by Zafar Hayat Khan on Monday, Jan 27, 2014 at 7:37:11 AM
How my friend explained Dimon's pay raise to me: ... by Teddi Curtis on Monday, Jan 27, 2014 at 2:38:11 PM
Part 2: As Treasury Secretary, Hamilton led a cam... by Teddi Curtis on Monday, Jan 27, 2014 at 2:40:07 PM
Part 3: America entered a period of wild cat bank... by Teddi Curtis on Monday, Jan 27, 2014 at 2:41:34 PM
Part 4: America was still not under the influence... by Teddi Curtis on Monday, Jan 27, 2014 at 2:42:20 PM
Thank you for the history lesson. It is a travesty... by intotheabyss on Monday, Jan 27, 2014 at 4:15:26 PM
He is the ICON of predatory capitalISM.  The ... by Virginia Simson on Monday, Jan 27, 2014 at 3:26:51 PM