Fines = Cost of Business for Mega Banks
|October 24, 2013||Posted by Staff under Financial|
TruthDig, Oct 21, 2013
By Robert Scheer
JPMorgan Chase, the biggest U.S. financial institution by assets, accepted a $13 billion fine on civil charges, a record-breaking civil settlement.
The $13 billion fine represents about half of the profit JPMorgan garnered last year. The company’s stock price, which has increased by 23 percent since January despite a barrage of crises and fines, has not been damaged by the latest settlement.
The criminal case against JPMorgan arose from an FBI-obtained email from a JPMorgan employee in Sacramento, Calif., who warned higher-ups at the bank that they were grossly exaggerating the value of the mortgage backed securities being marketed. That employee is now cooperating with the government and a trial on the matter will go to the origins of the economic crisis in which JPMorgan played a leading role.
JPMorgan wrongdoing include: the Libor scandal and the derivative scams of the “London Whale”; bribing Chinese officials; failing to report what it knew about the Bernard Madoff Ponzi scheme; alleged energy price rigging; and the bank’s acceptance of fines on its credit operations.
CEO Jamie Dimon will survive quite nicely, secure in his roughly $20 million pay and backed by a handpicked board of directors focused on the bank’s still buoyant stock price.