JPMorgan Chase Still Trying to Blame Individuals For Fail Whale-Related Fraud

By: Thursday November 1, 2012 5:58 am

JPMorgan Chase has sued the former manager of Bruno Iskil, the “London Whale” who executed the “Fail Whale trades” that cost the company as much as $7 billion. Javier Martin-Artajo was the direct supervisor to Iskil in the Chief Investment Office in London.


Yesterday Was “Relieve Goldman Sachs of Their Legal Exposure” Day

By: Friday August 10, 2012 6:40 am

Goldman got off for two separate things here, detailed in this contemporaneous report on the SPSCI report: one, the securities fraud elements of lying to their investors and profiting off their lack of disclosure; and two, lying to Congress about it. The Justice Department didn’t see a problem with it. So any upstart investment bank looking to make it in the world, you have your marching orders. You have to lie to your investors, take the other side of the bet on the deals you offer them, and when questioned about it, obfuscate and obstruct the investigatory body. That’s the way to the top.

Whistleblower Provisions Can Be Applied Retroactively to Employees of Affiliates, Judge Rules

By: Tuesday July 10, 2012 12:20 pm

A United States judge ruled on Monday the whistleblower provisions passed in the Dodd-Frank law in 2010 could be applied retroactively to protect not only people employed by parent companies but also those working for subsidiaries of parent companies. The expanded coverage thus applies even to cases initiated before Dodd-Frank.

Dimon to Be Contrite Yet Steadfast in Senate Banking Testimony

By: Wednesday June 13, 2012 6:45 am

JP Morgan Chase CEO Jamie Dimon faces the Senate Banking Committee in a two-hour hearing scheduled for 10am ET today. He’ll be the only witness. Keep in mind that Dimon’s JPMorgan Chase has given millions to top-ranking members of the Banking Committee, so anything more than headline-grabbing and grandstanding without a real challenge to Dimon in the wake of the Fail Whale trades would be a bit of a surprise. I discuss his released testimony here and will be covering the hearing.

Volcker Rule Tightening Just the Beginning of a Financial Reform Strategy

By: Tuesday May 22, 2012 11:00 am

The Fail Whale trades showed that massive, as-yet unregulated risk still exists in our financial system, with the potential to bring down the economy once again and trigger massive taxpayer bailouts. Since the Administration already passed a law that was supposed to deal with that, they’re scrambling to restore what little of value existed in those laws.

As Fail Whale Losses Expand, Obama Administration Looks to Tighten Volcker Rule

By: Thursday May 17, 2012 10:40 am

The $2 billion “Fail Whale” trade has morphed into a $3 billion loss – and counting. The trade is still being unwound, so we aren’t yet sure about the final losses. What we do know more today is about the massive size of the trade.

Live Chat – William K. Black: The Foreclosure Settlement

By: Friday February 17, 2012 11:00 am

In the aftermath of the foreclosure fraud settlement, and as we look ahead to the working group on securities fraud co-chaired by Eric Schneiderman, one of the best people to look to for answers on how this whole thing could have gone – how it could still go – is William K. Black. The author of The Best Way to Rob a Bank is to Own One, and a central figure in exposing fraud among both financial executives and members of Congress during the S&L scandal, Black has been relentless on exposing the lax nature of regulation and prosecution during the past decade and more. His latest scoffed at the new task force on securitization fraud.

Psst… Here’s Your House Cheat Sheet

By: Tuesday December 8, 2009 11:50 am

Before any bill/amendment gets to the floor, it has to go through the Rules Committee, currently chaired by Louise Slaughter. It is Rules that decides what will be voted on and what won’t, and it is one of the principle ways that House leadership controls the agenda. As in, “don’t worry about electing anti-choice Democrats, leadership will never allow anti-choice legislation onto the floor.”

Why is Timothy Geithner Rejecting Legislative Policy?

By: Tuesday November 10, 2009 2:00 pm

What is truly puzzling is how Timothy Geithner feels emboldened to reject policy that would have to be set by the legislative branch and not him.

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