JPMorgan Chase on Capitol Hill
Senate hearing was a love fest, not a grilling.
by Stephen Lendman
On June 13, JPMorgan Chase CEO Jamie Dimon testified before the Senate Banking Committee. He discussed his firm's recent trading loss and industry practices.
It was more of a homecoming than grilling. Washington is Wall Street occupied territory. Foxes guard the hen house. Regulators don't regulate. Oversight is absent.
Investigations rarely happen. Those conducted are whitewashed. Criminal fraud is institutionalized. It's encouraged, not curbed.
Congress, the administration, SEC, and credit rating agencies are incestuously involved with giant banks and other major financial institutions. Whatever they want, they get.
Wall Street never had it so good. Senators didn't lay a glove on Dimon. His grand theft business model wasn't explained.
Former bank regulator/financial fraud expert Bill Black's book titled "The Best Way to Rob A Bank Is To Own One" told all.
He coined the term "control fraud." It lets corporate officials commit grand theft. Finance capital never had it so good. Trillions of dollars are stolen. Nothing intervenes to stop it.
On May 10, Dimon announced a $2 billion trading loss. Some estimates place it multiples higher. Trading is a euphemism for speculation. Stakes are high enough to cause crises.
Morgan is the tip of the iceberg. Other banks are deeply troubled. They'll come out in future announcements. Cursory explanations only will be provided. What Morgan bet and lost on wasn't explained.
European securities speculation looks likely. Its big trader is called the London Whale. Scoundrel media reports said little.
Troubled Eurozone economies face deepening depressions. Bank problems accompany them. Investing in their sovereign and/or private debt entails great risks.
Dimon attributed the loss to credit default swaps derivatives trading. They're the most widely traded derivative. They're unregulated insurance bets between two parties on whether or not a company's bonds may default.
Ellen Brown once asked: