Crime Does Pay For Banksters

JonathanTurley  January 26 2014

JamieDimonIn the past we have discussed the allegedly illegal and fraudulent practices of the Big Banks that helped bring the economy into Recession, but until now, we have not seen such a blatant example of how it pays for Big Banks to break the rules and get ahead at the same time.  As you may recall, JP Morgan Chase Bank recently agreed to a $13 Billion dollar settlement with the Justice Department for allegedly defrauding customers.  That sounds like a big number, but that was only part of the total fines and penalties JP Morgan Chase was liable to pay in 2013 due to its less than honorable business practices.

It may surprise you that after agreeing to the $13 Billion settlement and having to pay other large fines, the CEO of Chase is getting a big raise. An $8.5 Million dollar raise!

Jamie Dimon, chairman and CEO of JPMorgan Chase, will be paid $20 million for his work in 2013, restoring most of the $11.5 million cut directors imposed a year earlier following the company’s embarrassing derivatives loss.  The sum includes a base salary of $1.5 million, plus $18.5 million of restricted stock, the company said in a public filing on Friday.  Dimon was paid $11.5 million for 2012, half of his $23 million compensation in each of the prior two years, according to company filings.   The raise, decided by the board of directors, comes after JPMorgan annual profits fell 16 percent in 2013 as the company agreed to pay out some $20 billion to settle legal claims from government agencies and private investors.” CNBC

I guess I am just naïve to think that if the bank I was in charge of was on the verge of civil and criminal charges and I had brokered the deal to “limit” the costs to the bank to $13 Billion in the one case, that maybe the Board of Directors might ask for my resignation, if not firing me on the spot.  After all, as the CNBC article quoted above states, the profits of the bank fell 16 percent!

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Felons In Charge Of Our Largest Financial Institutions [Video]

USA Watchdog April 17 2013

Former bank regulator and Professor William Black says, “Apparently, regulators are much more sophisticated than we were because we had never thought of leaving felons in charge of our largest financial institutions.” Dr. Black contends, “This started with the first lie of the virgin crisis–that the banks are pure and had stopped violating the law. The second lie is that we can’t prosecute . . . because if we did, we would cause the financial system to collapse. This is ludicrous.”

Dr. Black predicts, “The U.S. banking system is absolutely primed for the next meltdown. Dr. Black and others think, “There is pervasive fraud at the most reputable banks. . . . The U.S. financial system is sick, and we still have the fundamental dynamic of a regulatory race to the bottom.”

Join Greg Hunter as he goes One-on-One with UMKC Professor William K. Black.