Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 22

Thread: JPMorgan Marketing Downtown’s 1 Chase Manhattan Plaza

  1. #11
    J.P. Morgan to Pay Over $1 Billion to Settle U.S. Criminal Probe Related to Madoff

    J.P. Morgan Chase is expected to pay more than $1 billion in penalties to the Justice Department to end a criminal probe into whether it provided adequate warnings about Bernard L. Madoff. The deal, which would also include a deferred-prosecution agreement with U.S. Attorney Preet Bharara, could be wrapped up by the end of year, said others close to the case. Prosecutors have been looking for whether the bank failed to alert regulators despite numerous red flags. A central component of the case is why the bank didn't provide a formal report raising concerns about Mr. Madoff in the U.S. despite filing such a document with authorities in the U.K.
    J.P. Morgan to Pay Over $1 Billion to Settle U.S. Criminal Probe Related to Madoff - WSJ.com

    One more scandal!
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  2. #12
    The problem is that huge fines like this do not hurt the criminals or the people who let this happen at all. They only hurt the company shareholders. What they should be doing it putting a few of the culprits behind bars for a while. That will discourage others from following in their path.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  3. #13
    Quote Originally Posted by TopDogger View Post
    The problem is that huge fines like this do not hurt the criminals or the people who let this happen at all. They only hurt the company shareholders. What they should be doing it putting a few of the culprits behind bars for a while. That will discourage others from following in their path.
    They can put the culprits behind bars (It is a free pass, because you will never hit the core) or they can fine them more and if they accumulate frauds, they should fine even more.

    JP Morgan make $93.65 Billions of gross revenues, so $13 billions from the recent fine, and this $1 billion fine don't hurt them enough to make an example. If they were fined 33% of their gross revenues, perhaps it will make think them twice the next time. These guys understand only money, let's them understand what they will understand
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  4. #14
    Quote Originally Posted by Franc Tireur View Post
    They can put the culprits behind bars (It is a free pass, because you will never hit the core) or they can fine them more and if they accumulate frauds, they should fine even more.

    JP Morgan make $93.65 Billions of gross revenues, so $13 billions from the recent fine, and this $1 billion fine don't hurt them enough to make an example. If they were fined 33% of their gross revenues, perhaps it will make think them twice the next time. These guys understand only money, let's them understand what they will understand
    Even if the company was fined 100% of profits, it doesn't hurt anyone but the shareholders. The shareholders did not make these decisions. The people who made the decisions still get their large salaries. Remember that it is not their money that is taken away by the fine; it is the company's money, which is the shareholders' money. A company feels no pain and cannot make decisions. The pain needs to be inflicted on the people who caused the problem.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  5. #15
    Quote Originally Posted by TopDogger View Post
    Even if the company was fined 100% of profits, it doesn't hurt anyone but the shareholders. The shareholders did not make these decisions. The people who made the decisions still get their large salaries. Remember that it is not their money that is taken away by the fine; it is the company's money, which is the shareholders' money. A company feels no pain and cannot make decisions. The pain needs to be inflicted on the people who caused the problem.
    Sure, but even in your hypothesis, the top guy who gives orders to fraud or else will never be catched because his employees will take the hit many levels down before even to be mentioned if he had ever been. That's why, you never put them in jail anyway.
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  6. #16
    They did lock up executives under Bush. He had a 'no tolerance' policy after the Enron incident, which actually took place under Clinton.

    Kenneth Lay

    Most people are not aware of this, but hundreds of executives were locked up under Bush. A guy I used to work for went to prison for 2 years while Bush was president. His crime: Using a company tractor normally used for snow removal at the company location for his own personal use on his ranch during the summer months. He could have avoided the prison time if he had set up a lease with a $1 monthly payment to the company.

    The current administration is going after companies, rather than the people who actually committed the fraud or other crimes.

    Bush went too far when prosecuting some CEOs, but Obama is not going far enough. They are obviously more interested in the money than prosecuting the criminals.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  7. #17
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  8. #18
    Quote Originally Posted by TopDogger View Post
    The current administration is going after companies, rather than the people who actually committed the fraud or other crimes.

    Bush went too far when prosecuting some CEOs, but Obama is not going far enough. They are obviously more interested in the money than prosecuting the criminals.
    You forgot that most of the board directors are the main shareholders. CEO and executives are paid and rewarded by shares, so they are also the shareholders. I guess that taking money from them is more efficient, now it depends on how much to avoid them to continue in different types of fraud.
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  9. #19
    Here is how one of the scams work:

    Blackstone Unit Wins in No-Lose Codere Trade: Corporate Finance


    GSO Capital Partners LP provided a loan to Spanish gaming operator Codere SA (CDR) in June with terms that gave it a guaranteed return on credit-default swaps, outmaneuvering sellers of the protection. The unit of Blackstone Group LP (BX) structured the loan in a way that would lead to a payout on swaps it held, according to three people with knowledge of the situation who asked not to be identified because the discussions were private. The contracts were triggered on Sept. 18 after Codere delayed an interest payment by two days to comply with the loan terms. GSO held 25 million to 30 million euros of the swaps, meaning it may have made at least 11.4 million euros ($15.6 million), according to one of the people and data compiled by Bloomberg.

    The trade shines a light on the opaque world of credit-default swaps, where the interests of lenders and debt traders aren’t always aligned and those in a position of influence have the ability to affect whether the contracts get triggered.
    “If you’re going to trade CDS, you’ve got to be fully aware,” Peter Tchir, founder of New York-based hedge-fund adviser TF Market Advisors, said in a telephone interview. “The only losers are the guys who seemed to play the CDS market incorrectly or didn’t see this as a potential outcome.”
    Blackstone Unit Wins in No-Lose Codere Trade: Corporate Finance - Bloomberg
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  10. #20
    Quote Originally Posted by Franc Tireur View Post
    You forgot that most of the board directors are the main shareholders. CEO and executives are paid and rewarded by shares, so they are also the shareholders. I guess that taking money from them is more efficient, now it depends on how much to avoid them to continue in different types of fraud.
    With most corporate boards, a couple of founding members may be major shareholders, but most are not. Board members are given stock or stock options, but you have to hold at least 20% of the shares to be considered a major shareholder.

    The other issue is that the board is not involved with the day-to-day activities. Most do not know the employees and are not aware of the day-to-day operations. Board members set the strategic goals for a company. They are probably not the guys and gals involved in risky decisions that end up creating the problems. Bonuses and incentives for employees tends to drive the problems. Whoever sets up those programs needs to be investigated.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


Page 2 of 3 FirstFirst 123 LastLast

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •