Let's address two tragedies today.
The first is how Jamie Dimon & Co. and all the guilty big banks get away with murder.
The second is something I want to share with you because 50 years ago today, President John Fitzgerald Kennedy was assassinated. It isn't a conspiracy theory about who did it, but a likely theory about what happened and the conspiracy to cover that up.To continue reading, please click here...
The JPMorgan Settlement: $7 Billion Is Tax Deductible
The fact that this week's $13 billion JPMorgan settlement was a record between a U.S. company and the government is not the most notable part of this deal...
What's more shocking about this record-high settlement is that more than half of it could be tax-deductible.
Under terms of the $13 billion deal, JPMorgan Chase & Co. (NYSE: JPM) will pay $4 billion toward consumer relief. The remaining $9 billion goes to settle federal and state civil claims stemming from entities involved in the mortgage securities. The state of New York will receive $613.8 million, California $298.9 million, Illinois $100 million, Delaware $19.7 million, and Massachusetts $34.4 million, according to the Department of Justice.But now we find out that JPMorgan still has an ace up its sleeve...
Congress Just Played a Trick on American Taxpayers
It just so happens I have both a "trick" and a "treat" for you today.
First, the "trick."
Wednesday the House passed a bill titled The Swaps Regulatory Improvement Act.You won't believe why they thought this would be a good idea...
What the JPM Settlement Means for Wall Street
The $13 billion settlement between JPMorgan Chase & Co. (NYSE: JPM) and the federal government shocked markets this week, as the fines would be a record paid by a Wall Street institution.
According to reports, the sum will amount to approximately half of the company's 2012 profits.
The JPM settlement is another black eye for the company and its weathered Chief Executive Officer (CEO) Jamie Dimon, who had emerged from the financial crisis as a pseudo cult figure with Teflon status.Here's something that would really get their attention...
JPMorgan (NYSE: JPM) Talks $11 Billion Settlement; Q3 Earnings at Risk
JP MorganChase & Co. (NYSE: JPM) finds itself in front of regulators yet again for misdeeds.
Chief Executive Officer (CEO) James Dimon was in Washington yesterday (Thursday) attempting to broker a settlement over the bank's sale of substandard mortgages.
Dimon met with U.S. Attorney General Eric Holder about a possible $11 billion settlement in attempts to end criminal and civil charges over JPM's questionable mortgage practices. The U.S. Justice Department said earlier in the week it could file a lawsuit over one of the bank's pending mortgage cases.To continue reading, please click here...
How JPMorgan and the London Whale Can Sink Your Portfolio
In the spring of 2012, JPMorgan Chase & Co.'s (NYSE: JPM) not-so-rogue trader, Bruno Iksil, better known as the London Whale, made a series of derivatives trades on credit default swaps that only appeared to be unauthorized.
In reality, those trades were just one side of JPMorgan betting against the other in a doom struck hedging strategy.
We're talking about trades so big they made waves across a $10 trillion market.
Bank of America and JPMorgan, Oh How Illegal Activity Pays
What a surprise. The big banks are not playing by the rules -- the rule of law, that is.
The Justice Department announced that it is pursuing a civil lawsuit against Bank of America on the grounds that the bank lied about the quality of the mortgages underlying its mortgage-backed securities (MBS) prior to the housing collapse and financial crisis. The Justice Department is still on a high from its successful civil lawsuit against Goldman Sachs Group Inc.'s (NYSE:GS) mid-level toxic securities shill, Fabrice Tourre.
The charges allege out-and-out fraud in Bank of America's soup-to-nuts loan origination and securitization of mortgages. Loans, bad from the start, were knowingly bundled and securitized into trade-able MBS, unbeknownst to buyers.
Abuses at McDonald’s and JPMorgan Chase Help Keep America Poor
Natalie Gunshannon, a McDonald's worker from Pennsylvania, has just won the right to... draw a paycheck. Work-for-pay is a fairly straightforward system that the Western World has been using for the past six or seven centuries, give or take.
Ms. Gunshannon was an hourly employee at a McDonald's franchise in Shavertown, Pennsylvania. Her degree is in massage therapy, but jobs in that field are scarce. A single mother, she took whatever work was available, which brought her to McDonalds, where she worked the line for $7.44 an hour, 30 to 70 hours per week.
After her first pay period, she was given not a paycheck, but a "debit" card loaded with her wages. This card, backed by JPMorgan Chase & Co. (NYSE:JPM), could be used anywhere Visa was accepted - including ATMs. It all seemed very convenient.
Five Scandals That Made JPMorgan Wall Street's Worst Villain
Wall Street's Big Banks are hardly known for their good deeds, but JPMorgan Chase (NYSE: JPM) may be the worst of the lot.
For a bank that used to be considered a model citizen among Wall Street institutions, the reversal of reputation has been stunning.
According to The New York Times, at least eight federal agencies are currently investigating JPM. And JPMorgan has more regulatory sanctions against it than any other major U.S. bank.
The damage to JPMorgan's reputation has gotten so bad that it has started to negatively affect the nation's largest bank by assets.
Increased regulatory scrutiny brought on by the scandals has slowed or halted about 60 new projects in JPMorgan's consumer unit, for example. The turmoil also has touched off a series of high-profile departures from the bank.
Why JPMorgan Wants to See More Americans on Food Stamps
Every time an American signs up for food stamps in one of 23 states, JPMorgan Chase & Co. (NYSE: JPM) adds to its revenue stream.
That because JPMorgan Chase contracts to operate as the processor of the Electronic Benefits Transfer (EBT) cards in those states. JPMorgan earns a fee for each recipient, ranging from 31 cents to $2.30, depending on the state, every month for the term of the contract.
JPMorgan's seven-year Supplemental Nutrition Assistance Program (SNAP, the official name for the federal food stamp program) contract with New York state, for example, brought in more than $126 million of revenue to the big bank.
Florida has paid JPMorgan more than $90 million since 2007. Pennsylvania's seven-year contract exceeded $112 million.
It brings a whole new meaning to "corporate welfare."