“It’s beginning to look as if JPMorgan Chase has had a hand in every major banking scandal of the last decade. In fact, it’s the Zelig of Wall Street crime. Take a snapshot of any major bank fraud and chances are you’ll see JPMorgan Chase staring out at you from the frame.JP Morgan CEO Jamie Dimon. (Photograph: Karen Bleier / AFP / Getty Images)
Foreclosure fraud, investor fraud, cheating customers, market manipulation, LIBOR … and now, the coup de grâce to JPM’s tattered reputation: a $2 billion fine for closing its eyes and covering up as Bernie Madoff literally bilked widows and orphans, along with a lot of other families and charities. (Here’s a list of investors.)
Does Jamie Dimon, the bank’s CEO, still think people don’t say enough nice things about him? Do his friends?
More importantly, how does the largest bank in the country (measured in assets) get away with being worse than Enron? That one’s easy: By being the largest bank in the country.
Guilty as Sin
JPMorgan Chase was hit with a “deferred prosecution agreement” for criminal behavior in this latest settlement, which basically means they won’t be prosecuted as long as they honor the agreement and keep admitting to their own wrongdoing. As the New York Times notes, this kind of arrangement is “nearly unheard-of for a giant American bank,” is “typically employed only when misconduct is extreme,” and “underscores the magnitude of the case against JPMorgan.”
According to publicly available information, the case against JPMorgan Chase is extremely damning. Even after highly suspicious facts came to light about the Madoff operation, JPM continued to package and sell Madoff-fed funds to its customers. It failed to report him to the authorities even after concluding that he was engaged in massive fraud….”Twitter