Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe JP Morgan Fine Is a Joke Wall Street Crooks Must Really Be Punished or They'll Keep Screwing Us
http://www.alternet.org/jp-morgan-fine-joke-wall-street-crooks-must-really-be-punished-or-theyll-keep-screwing-usThe biggest fine in history that is soon to be levied on JPMorgan Chase, the notorious usury and fraud organization, will not be as big as the headlines claim. Alan Pyke andDavid Dayen have made that clear. The tentative deal includes a fine of a mere $9 billion, with the bank on the hook for another $4 billion in relief for struggling homeowners, which often includes actions banks wouldve undertaken anyway.
But it is a big fine. It is decidedly bigger than JPMorgan wanted it to be, which we know because CEO Jamie Dimon recently traveled to Washington to ask that it be smaller. Most important, it will not indemnify JPMorgan from ongoing and potential future criminal investigations, which is good, because there should be criminal investigations into crimes, even when banks commit them. Because of prior fines, and because the firm is lawyering up and spending a small (for them) fortune on compliance, JPMorgan just announced its first quarterly loss in nearly a decade.
It is still not remotely enough, and, more important, there isnt a dollar sign that would be enough. Or, to put it another way, any dollar sign that would approach enough would actually destroy the banking industry entirely. (See, for example, Yves Smith citing Andrew Haldane, who argues that the levy needed to recoup the costs of financial crises would be in excess of $1.5 trillion per year, which would bankrupt the entire international finance industry.)
Obviously bankrupt the international finance industry and run banks as civic-directed utilities is an outcome Id be perfectly fine with, but its not one the Justice Department is prepared or able to bring about at the moment. Still, penalties large enough to look good in headlines but small enough not to cause actual damage to megabanks with the power to destroy the world economy arent going to address what should be the No. 1 priority of securities law enforcement, which is to stop criminal and fraudulent behavior from happening to begin with. As much as Id love to see some misbehaving bankers sent to banker jail, sending them to banker jail isnt the goal in and of itself. Preventing future crises and fraud is.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
4 replies, 519 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (4)
ReplyReply to this post
4 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
The JP Morgan Fine Is a Joke Wall Street Crooks Must Really Be Punished or They'll Keep Screwing Us (Original Post)
xchrom
Oct 2013
OP
hobbit709
(41,694 posts)1. Nothing will change until we start locking them up
They won't be able to write that off their taxes.
And put them in a real jail, not a country club one.
sendero
(28,552 posts)2. And that is never going to happen...
.... until we implement a system of governance that does not permit our leadership to be bought.
Frankly, I doubt that will ever happen. Certainly not in my lifetime.
I also don't know if it is even possible to correct it. It will not be in my life time either.
Mnemosyne
(21,363 posts)4. K&R nt