When a bank is robbed, the FBI swoops in. When a major bank loses $2 billion, other agencies take the lead. But in the case of Jamie Dimon and JPMorgan Chase, the FBI is investigating there as well in the wake of its stunning loss, which has triggered investor lawsuits. Bank regulation remains a contentious issue, but what about criminal liability? Should CEO and Chairman of the Board Dimon be brought up on charges? Should he and other bank executives face jail terms?
Poll: Should Jamie Dimon of JPMorgan Chase Go to Jail for $2 Billion Loss?
Chairman/CEO of one of the nation’s biggest banks is under fire by investors, faces FBI probe.
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Janet Shull June 1, 2013 at 07:35 pm
Love Lido's!!! The whole Tarditi family has been eating there and holding family events there since…Read More the day they opened. Five generations of our family have enjoyed their food and hospitality. When you go to Lido's, your treated as family. And their food is Delicious!!!
Carol Ybarrondo Rauscher June 1, 2013 at 10:25 pm
Been eating there consistently since 1960....best Italian anywhere!
Christine Huard (Editor) May 28, 2013 at 04:49 pm
Great news! Thanks for posting on Lemon Grove Patch!
They accuse him of delaying the announcement as part of a fraudulent scheme to prop up JPMorgan stock between early April, when investors first learned about the “London Whale” roiling derivatives markets, and May 10, when Dimon first disclosed the loss. I am as pro-business as you can get, but he's crook and should have been in jail a long time ago.
http://www.youtube.com/watch?v=348WAJ5XEPM "Regulators have written only 185 of the expected 400 rules. But those 185 rules are expected to cost the private sector more than 24 million man-hours each year to comply. The tracker has also found that those 185 rules take up more than 5,300 pages. Texas Republican Rep. Randy Neugebauer, the chairman of the committee’s subcommittee on oversight and investigations, told The Daily Caller that means that instead of hiring people to handle small business loans, banks will be hiring staff to comply with the new government regulations, ultimately having a negative impact on job creation. “For example, let’s just get it down to the community banker — the person that loans money to most of the small businesses in our country,” Neugebauer said in a phone interview. “We’ve had a few community bankers come in here and say, ‘you know, they’re hiring a lot more compliance officer than they are loan officers.’ That is increasing the cost of banking and, ultimately, they have to charge higher interest rates and higher fees.” http://dailycaller.com/2012/04/16/committee-dodd-frank-compliance-to-cost-private-sector-24-million-man-hours-per-year/
The too-big-to-fail "banks" continue to operate as they did before the 2008 crash. It's business as usual for them. If your representative does not actively work to reinstate Glass-Steagall, which prevented crashes for 70 years, he/she needs to go. We've seen what just 9 years of no regulation can do. The 2008 crash was a bi-partisan action. Neither party machine will move because they are bought and paid for. My party does not endorse me for that very reason. I will not ever take a contribution over $100. I will actively press for reinstatement of Glass-Steagall by forming a bi-partisan caucus dedicated to that purpose. We will make it such a high visibility issue that the rest of Congress will be unable to defend the repeal and, with pressure from their constituents, will "evolve" to a new position calling for reinstatement. The banksters and corporatists call the shots right now. That can change starting in November if those with the ultimate power, The People, exercise their power.
That's why it MUST be done.
Banks view loaning money to people/business is more risky and less profitable than investing in schemes like this - indexes, etc. Through Q.E., the Fed is exchanging CASH for toxic assets - i.e. giving banks free money to loan to US - and yet as this example proves - they're using that money to invest in more crap that WE THE PEOPLE will pay for in the long-run - either through Bail-Outs, Stock market losses (have you checked your mutual funds lately) or inflation (Q.E.). My vote - Hang the bastard!
Notice I did not say price inflation. This is critically important. Price inflation is controlled by market forces and is NOT in the purview of the Fed. While the Fed (headed by Bernanke, a Republican) did hand out nearly $17 trillion to Too-Big-To-Fails, wealthy individuals and financial institutions in Europe and elsewhere during the initial stages of the financial crisis, the Fed determined this was necessary to prevent a worldwide financial meltdown. Such an event would most certainly have meant a Depression with a capital "D." Unemployment, one of the Fed's mandates, would have skyrocketed well beyond the numbers we have been enduring in this deep recession thus far. Thus, it had no choice but to inject liquidity and avoid a real crash. Whether $17 trillion was necessary, and whether all institutions, who received funds needed the capital, is certainly open to debate. But the critical factor was that the injection could NOT be too little, as that would have meant worldwide economic collapse. Since the obvious firewall that is the Glass-Steagall Act was no longer in place, the fraud conducted by Wall Street that caused the crash, this massive infusion of cash, shocking as it was, was absolutely necessary. As to wage inflation . . .
In actuality, the Fed has set it's target of 2% wage inflation too LOW in this time of deep recession. The WAGE inflation target should be raised to 4% during this time of economic downturn. Financial institutions are sitting on $2 trillion in CASH and refuse to make loans because there is not enough demand for there products to hire. Only higher wages, and thus disposable income, will bring demand back, so that companies and small businesses will hire again, and set us on a path of growth. Big banks are sitting on $1.5 trillion in cash and don't make loans to us because the big banks STIll make more money on complicated financial deals, swaps, etc. than they would make if they loaned to you. It's the same scenario as it was before the crash! The 5000(and growing) pages of Dodd-Frank are a total joke. Glass-Steagall is 37 pages, bulletproof, and needs reinstatement NOW!