The Market Ticker – JP Morgan: Fraud Is Fraud, Where Are The Indictments?

The Market Ticker – JP Morgan: Fraud Is Fraud, Where Are The Indictments?

From the JP Morgan earnings release:

JPMorgan said today that it recently discovered information that suggests some individuals at the company may have been trying to avoid showing the full amount of the losses. All employees working on synthetic credit derivatives in the CIO have left the bank, the company said today.

Evidence of fraud within a bank is not just a fireable offense. It is also evidence of a criminal offense which must be investigated and acted upon.

Intentionally reporting bad marks isn’t something that one should brush under the rug. In addition it is clear that Jamie Dimon exercised insufficient oversight of an office that reported directly to him.

As Janet Tavakoli has opined today, and I agree, under any reasonable standard Jamie Dimon must be fired.

Further, it appears that a material mis-statement of results occurred and one thus cannot trust the former accounting statements until and unless they are gone through with a fine-toothed comb.

I know Dimon is somewhat of a “golden boy” among both regulators and the “cognescenti”, but that’s immaterial here. This is not a “rogue trader” who is three or four levels of management removed from the CEO’s office — it is literally a direct report that not only made “bad decisions” they appear to have attempted to intentionally hide the loss, and Dimon was directly responsible for supervision of that office and failed to exercise the appropriate level of oversight and diligence.

He must go.

(Never mind that it appears that investors think he’ll not only keep his job, but the bank will be rewarded for effectively “getting away with it” — the stock is up 3%.)

Disclosure: No position in JP Morgan.

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Comments
3 Responses to “The Market Ticker – JP Morgan: Fraud Is Fraud, Where Are The Indictments?”
  1. defrauded says:

    It may only be my humble opinion but … unless and until the citizens of the US see the major players responsible for all of the prevalent banking fraud go to jail, confidence in our government will remain at an all-time low, and our economy will continue to suffer as a result. None of us 99 percenters want to invest in a country that is totally rigged against us in favor of the 1% oligarchs.

  2. Wayne Newton says:

    We need to get are butts up and take a stand for change and possibly do these folks the way they did that eyetalian dictator some many moons ago.

  3. talktotennessee says:

    Jamie Dimon with his altar boy looks and humble apologies is the front man to deflect public and political opinion.
    Fraud is fraud. Had they put this figure out initially it would have shocked the market. It was deliberately issued in two announcements probably suggested to -reduce the impact.
    Case in point! Who was shocked at his new admission? Old news. The stock market didn’t even react. You think we don’t have propaganda and political manipulation all the way to the top in this country? Remember a story or two about North and Reagan and Nixon and his Watergate boys, a few others just demonstrate that Jamie has friends too and this will be swept under the rug.
    Just watch and see!

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