In legal terminology, this is known as a recidivist lawbreaker.
By Pam Martens and Russ Martens of Wall Street on Parade.
Each quarter publicly traded companies file a form known as the 10-Q with the Securities and Exchange Commission. The 10-Q filed by the largest bank in the United States, JPMorgan Chase, on November 2 carried a very disturbing paragraph that had not appeared in the 10-Q the bank filed on August 3. The paragraph reads as follows:
“JPMorgan Chase Bank, N.A. has been advised by one of its U.S. regulators of a potential civil money penalty action against the Bank related to historical deficiencies in internal controls and internal audit over certain advisory and other activities. The Bank already has controls in place to address the deficiencies related to the proposed penalty. The Firm is currently engaged in resolution discussions with the U.S. regulator. There is no assurance that such discussions will result in resolution.”
Why is this paragraph so disturbing? First of all, the words “deficiencies” and “audit” are not two words that one wants to read in the same sentence pertaining to any Wall Street bank. But they are particularly frightening when it comes to the largest bank in the United States that has racked up an unprecedented five criminal felony counts – to which it admitted guilt – in the past six years. That’s five more felony counts than the bank racked up in the prior 100 years of its existence.
Equally unprecedented, the Board of Directors of JPMorgan Chase has kept Jamie Dimon as its Chairman and CEO, despite the fact that he has sat at the helm of the bank during this unprecedented and relentless crime wave.
There is also the disturbing fact that JPMorgan Chase’s three-year probation for its role in rigging the foreign exchange market just ended in January of this year. Nine months later, on September 29, it gets slapped with two new felony counts by the U.S. Department of Justice for rigging the precious metals and U.S. Treasury market and is put on another three-year probation.
And now, just a little more than a month later, we are learning that there is yet another federal probe of this bank in the works.
This is known as a recidivist lawbreaker. A real Justice Department doesn’t keep doling out probation periods to recidivist lawbreakers. It throws them in the pokey and demands changes in the management and Board of JPMorgan Chase…