Comments on: Is JP Morgan being unfairly singled out? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Jinny Oberdick Mon, 20 Oct 2014 11:36:02 +0000 Related to Merck Individual Care The modern Merck is a international clinical alpha dog fitting in with profit the environment be. Merck Individual Care is a part for Merck Company., Inc. Each day, large numbers trust in a number of our own industry leading makes which help eliminate or perhaps treat many common types of conditions.

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By: nprfreak Sun, 13 Oct 2013 14:11:09 +0000 I guess this falls under #1, but JPM has done more damage than is widely recognized. One example comes from the Chase credit card, where fixed rate “for the life of the loan” balance transfers were agressively marketed while the prime rate was MUCH higher than the offered rate. Apparently, the expectation that most would mess up and end up paying the higher rates that come after a mistake. When that did not occur across the board and the prime rate got below the promotional rate, Chase hit the responsible borrowers with a 5% minimum payment.

Perhaps this was Gordon Smith and not Jamie Dimon, but it drove some to bankruptcy. There was a class action settlement but that reaped more reward for attorneys than for those harmed. As one harmed, I have a difficult time fining any fine too large for this company.

By: y2kurtus Sun, 13 Oct 2013 02:00:22 +0000 Felix I’d love to hear a rebuttal on either of the following issues:

#1 “weaker banks might also deserve such massive fines as well — and are managing to avoid them only because they have less ability to pay them.I’m fine with this possibility”

That is an admission that you would like to selectively apply the rule of law. Poorly run weak banks with minimal capital get off easy while large strong banks pay up. Where exactly does that path take us Felix?

#2″The bargain would be this: if all those efforts worked, and JP Morgan ended up as a bank making $6 billion per quarter in profits, then at that point it would have to fully atone, with a few quarters’ profits, for its own sins and those of the banks it wanted to acquire. JP Morgan’s solvency and capital adequacy would be guaranteed: it would only face the fines if it was more than capable of paying them. Dimon would have jumped at such a bargain…”

…but that was not the bargain we made was it Felix? We made a different deal didn’t we… as you well know since you did the best job covering it: questions-about-the-jp-morgan-bear-stear ns-deal/

we begged JPM to save Bear didn’t we Felix. Even promised JPM we’d ring fence Bears bad assets didn’t we. Here again you abandon the rule of law. Contracts and agreements can now be unilaterally changed by the government years later can’t they. I sell you some property for a price and terms we mutually agree upon… it seems to me a few years later you’ve gotten the better of me on that deal… so I change the terms on you… how does that taste to you Felix.

You’re better than this buddy…

By: Woltmann Sat, 12 Oct 2013 16:09:35 +0000 With enough accounting creativity JP has managed to appear to be taking a beating under the weight of their legal problems? Poor pitiful JP? Is anyone really buying this crap. If JP looks sufficiently downtrodden and recalcitrant regulatory and public opinion will finally loose interest and back off? I say Dimon’s head on a stick at 270 Park Ave. To hell with him ..

By: StuartG Sat, 12 Oct 2013 16:08:44 +0000 I agree with Felix and add these points:
Buying Bear and WaMu included the regulatory and litigation risks. JPM knew the bill would come due some day. Isn’t it better that they at least have the cash to survive the drubbing?
The Whale fines were for inadequately informing the board or the regulators. Why is there any surprise?
And for decades Bernie’s brokerage deposited billions of suckers’ cash into Chase and disbursed billions without buying securities. Every banker knows that turning a blind eye can facilitate money laundering. Why the surprise?
And anyone who gets a speeding ticket says it’s unfair – “everyone else is doing it!” – but if a 17-year-old male sticks his middle finger at the cops while driving a red muscle car with a broken muffler and seven teens enjoying loud hip-hop he too may become a victim of unfairness.
JPM will survive. Let Jamie worry about Jamie.

By: crocodilechuck Sat, 12 Oct 2013 03:25:24 +0000 Felix,

” It just implies that weaker banks might also deserve such massive fines as well — and are managing to avoid them only because they have less ability to pay them”

Straw man with a triple pike & somersault. Any data to back this up? Anything?

I’m going with your Door Number One above. Control fraud in the USA’s biggest banks has been decriminalised under the Bush 2 and Obama administrations, and you have reaped what they sowed over the last decade.

And until executives in these brobdingnagian banks face criminal charges and are put away (the Charles Keating* experience) you can expect more of the same.

Thought experiment, Felix: do you include credit unions in your slur towards ‘smaller banks’ emulating JP Morgan Chase’s example above? How about your’s?

If ‘yes’, you’ve just indicted yourself as a director.

* ting

By: Kaleberg Sat, 12 Oct 2013 00:20:10 +0000 If I remember correctly, the management at JPMorgan is of legal age and well compensated. They bought banks with their eyes open. The fine, roughly $15-$20,000 human money equivalent (HME) is peanuts.

Yes, a lot of other banks should be paying and paying a lot more, but we generally regard multibillion dollar institutions as fragile flowers incapable of enduring the slightest shock, until homeless schizophrenics, eight year old kids who chose their parents unwisely, people with insufficiently high albedoes and other such hard cases.

If we had simply let ALL the investment houses fail back in ’07 and ’08, we would have rebuilt a robust, actively lending banking sector by the middle of 2010, and we wouldn’t be dealing with these nickle and dime fines now. It’s not as if these organizations are fonts of wisdom or run by exceptionally smart individuals. We should stop pretending that they are.