Wednesday, March 27, 2013
The price of arrogance
J P Morgan Chase has, since the beginning of the Bush Depression, been the benchmark of of banking arrogance on Wall St. The trouble with arrogance is that it pays no dividends and usually ends up pissing people off. JPM appears to be experiencing that last part these days as multiple investigations of the bank are continuing.
At least two board members are worried about the mounting problems, and some top executives fear that the bank’s relationships in Washington have frayed as JPMorgan becomes a focus of federal investigations.When you piss off that many people at one time,it would be nice to see something more than a cash settlement come from this.
In a previously undisclosed case, prosecutors are examining whether JPMorgan failed to fully alert authorities to suspicions about Bernard L. Madoff, according to several people with direct knowledge of the matter. And nearly a year after reporting a multibillion-dollar trading loss, JPMorgan is facing a criminal inquiry over whether it lied to investors and regulators about the risky wagers, a case that could accelerate when the Federal Bureau of Investigation and other authorities interview top JPMorgan executives in coming weeks.
All told, at least eight federal agencies are investigating the bank, including the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission and the Securities and Exchange Commission. Federal prosecutors and the F.B.I. in New York are also examining potential wrongdoing at JPMorgan.
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