HOW JPMORGAN HELPED BANKRUPT AN ENTIRE COUNTY
JPMorgan coughs up $722 million for Jefferson County--$75 million in fines and $647 million in forfeited fees, but not even a slap on the wrist.
Nov. 4 (Bloomberg) -- JPMorgan Chase & Co. agreed to a $722 million settlement with the U.S. Securities and Exchange Commission to end a probe into sales of derivatives that helped push Alabama’s most populous county to the brink of bankruptcy.
JPMorgan will give Jefferson County, Alabama, $50 million, pay a $25 million penalty and cancel $647 million in fees the county faced to unwind the transactions, according to an SEC news release. In addition, the agency charged two former JPMorgan employees for their roles in an “unlawful payment scheme” that allowed them to win bond and interest-rate swap business with the county.
The settlement comes a week after Larry Langford, the former president of the Jefferson County Commission and Birmingham mayor, was convicted for accepting $235,000 in designer clothes, Rolex watches and cash from an Alabama banker who JPMorgan paid almost $3 million to help arrange the swaps associated with a refinancing of the county’s sewer debt.
But this gangster behavior is not unusual. How about this piece on JP Morgan?
How about it when they screwed farmers in Australia with synthetic CDO's that they didn't understand?, How about the hidden fees in swaps with the Roosevelt Middle School? How about Power Reverse Dual Currency notes to blue haired savers in Japan? And how about the other $80 trillion of derivatives on their balance sheet, that they been screwing everybody else with?
You don't think JPMorgan didn't deliberately screw the folks in Australia? Then read this.
A good trade for JPMorgan is just a disguised theft.
But they dress their theft up, with layers of lawyers and layers of corporations.
After all, isn't JPM one of Bernanke's and Geithner's banks?