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Oct 20 2013

Why does Jamie Dimon still have his job?

The mega-investment bank JP Morgan Chase has been at the end of repeated bad news. It just reported its first quarterly loss in ten years. What was interesting is that this was largely due to the bank having to set aside $9.2 billion in lawyers’ fees, which gives you some idea of the extent of the charges of wrongdoing that it has to defend itself against.

Now comes another report that last Friday they have agreed to settle with the Justice Department civil charges over its questionable mortgage practices by paying $13 billion in fines. It is not clear whether the bank will be required to admit wrongdoing as part of the deal. This is important for any future prosecutions, both civil and criminal. According to NPR today, as part of the settlement they had hoped to be exempt from criminal penalties but the Justice Department had said no, no doubt because they had been getting a lot of heat for allowing the big banker criminals to avoid jail while prosecuting lower level people.

Jamie Dimon has for long been highly admired in Wall Street and been described as president Obama’s favorite banker. But surely shareholders will start to wonder if, even if he has been successful so far in making money at the expense of ordinary people, they want to leave the helm of the bank to someone who has incurred the largest fines in history.

3 comments

  1. 1
    left0ver1under

    Jamie Dimon has for long been highly admired in Wall Street and been described as president Obama’s favorite banker.

    Probably because Obama doesn’t meet any other bankers. Anyone who might tell the truth about the banking industry is screened out, and only wall-street-approved types like Dimon get presented by the industry. Then again, that’s how politicians get in, only the corporate-approved ones do, those out of touch with reality of everday life.

    It shouldn’t be called the “white house” anymore. From now on, I’m calling it the ivory tower.

  2. 2
    Dunc

    It shouldn’t be called the “white house” anymore. From now on, I’m calling it the ivory tower.

    I don’t think it’s fair to tar elite academics by the association. They may be disconnected and out of touch, but they’re not really doing any active harm.

    “Isengard” might be a more appropriate choice.

  3. 3
    Marcus Ranum

    “Isengard” might be a more appropriate choice.

    How about “Shenanigard” – named after the ancient tower of the dolts.

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