Search Results for: rap sheet

Is Citigroup Under Orders from Its Regulators to Break Itself Up?

Jane Fraser, Citigroup CEO

By Pam Martens and Russ Martens: January 20, 2022 ~ The last thing that Fed Chairman Powell needs in his second term are the sleazy details of the Fed’s trading scandal being released by investigators and to have to bail out the same megabank that Fed Chair Bernanke secretly bailed out from December 2007 through at least mid-July 2010. Obviously, we’re talking about Citigroup. Citigroup has been announcing major asset sales so rapidly since December that one has to wonder if the Office of the Comptroller of the Currency and/or the Fed is cracking the whip. (We’ll get to the significant details of why that might be the case in a moment.) On January 11, Citigroup announced that it intended to sell its consumer, small business and middle-market banking operations of Banco Nacional de México, otherwise known as Banamex. In 2017, Citigroup settled a criminal probe with the U.S. Department of Justice … Continue reading

These Are the Plunging Charts that the New York Stock Exchange Hopes You Won’t See

New York Stock Exchange

By Pam Martens and Russ Martens: December 30, 2021 ~ The New York Stock Exchange (NYSE) has had its share of scandals. There was the late 1930s when former NYSE President Richard Whitney went to prison for embezzlement.  In 2004 New York State Attorney General Elliot Spitzer took the NYSE and its former Chairman and CEO, Richard Grasso, to court over charges of violating New York State non-profit law by giving an obscene $187.5 million pay package to Grasso. In 2014 bestselling author Michael Lewis went on 60 Minutes to report that “the United States stock market, the most iconic market in global capitalism, is rigged” after writing a very convincing book, “Flash Boys,” explaining exactly how it was rigged. (We could go on and on but you get the point.) We want to go on the record, here and now, that the past scandals of the New York Stock Exchange … Continue reading

JPMorgan’s Crime Wave Continues, Calling into Question the Justice Department’s Lax Settlement with the Bank Last Year

Gary Gensler, SEC Chairman

By Pam Martens and Russ Martens: December 20, 2021 ~ JPMorgan Chase is the largest bank in the United States. It also has the scandalous distinction of having admitted to five criminal felony counts brought by the U.S. Department of Justice since 2014 and a breathtaking series of additional charges from other regulators. (See its Rap Sheet here.) On Friday, the Securities and Exchange Commission fined the securities unit of JPMorgan Chase $125 million for evading the ability of the SEC to adequately conduct its investigations of the bank because there was “firmwide” use by traders, supervisors and other personnel of non-official communications devices to conduct its business, while the firm failed to record and retain these messages as required by law. These new violations occurred despite similar conduct during the bank’s participation in the rigging of the foreign exchange market, which brought a criminal felony charge against the bank by … Continue reading

Traders Are Running for the Exits at JPMorgan Chase. Bloomberg News Can’t Figure Out Why

Billionaire Owner of Bloomberg News, Michael Bloomberg

By Pam Martens and Russ Martens: November 18, 2021 ~ Last Thursday, Hannah Levitt of Bloomberg News published a report about a large trader exodus at JPMorgan Chase. She wrote: “…By this fall, many of the team’s heaviest hitters had gone. “The setting wasn’t some struggling investment bank. It was the equity derivatives desk inside the mighty JPMorgan Chase & Co. – one of many pockets of employee turnover that have erupted there in recent months, keeping the company’s recruiters busy.” That article was published at 8:00 a.m. By 11:00 a.m., Bloomberg News was finessing that negative article with another article by Brian Chappatta, which appeared to be an attempt to boost both the bank’s reputation as well as that of its Chairman and CEO, Jamie Dimon. Chappatta wrote: “Even with competitive pay and the bank’s prestige, departure rates in many of its businesses are reportedly up at least a few percentage points from pre-pandemic … Continue reading

A Second Female Lawyer Who Worked at JPMorgan Chase Says Fraud Is Condoned at the Bank

Jamie Dimon, Chairman and CEO of JPMorgan Chase

By Pam Martens and Russ Martens: November 15, 2021 ~ The previous time a female lawyer who worked at JPMorgan Chase blew the whistle on frauds occurring inside the bank, the U.S. Department of Justice, along with other federal and state regulators, ended up charging the bank with selling toxic mortgage securities to investors and making JPMorgan Chase pay $13 billion to settle the charges. That female lawyer was Alayne Fleischmann, as Matt Taibbi detailed in a report for Rolling Stone in 2014. Taibbi summarizes the matter as follows: “Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as ‘massive criminal securities fraud’ in the bank’s mortgage operations.” According to Fleischmann, who worked as a Transaction Manager at JPMorgan, her department was assigned with assuring that only good mortgage loans were securitized but, instead, under pressure from bosses, it waived in improperly … Continue reading

Biden’s Nominee Omarova Called the Banks She Would Supervise the “Quintessential A**hole Industry” in a 2019 Feature Documentary

Saule Omarova

By Pam Martens: November 3, 2021 ~ Yesterday, President Biden stunned moderates in his party by formally sending his nomination of Cornell Law Professor Saule Omarova to head the Office of the Comptroller of the Currency (OCC) to the Senate. The OCC regulates national banks, those operating across state lines, which include some of the largest banks in the nation, such as JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup’s Citibank. Many folks believed that after Omarova’s recent law journal article became widely analyzed, she would remove herself from consideration or Biden would quietly ask her to step aside. As Wall Street On Parade revealed last week, Omarova’s 69-page paper published in the Vanderbilt Law Review in October, proposed the following: (1) Moving all commercial bank deposits from commercial banks to so-called FedAccounts at the Federal Reserve; (2) Allowing the Fed, in “extreme and rare circumstances, when the Fed is unable to … Continue reading

The Wall Street Journal and New York Times Censor Yet Another Major News Story on the Fed and the Mega Banks It Supervises

A.G. Sulzberger, Publisher of the New York Times

Pam Martens and Russ Martens: October 19, 2021 ~ On October 13, Wall Street On Parade broke the story that the Federal Reserve had quietly released the names of the mega banks that had grabbed tens of billions of dollars of repo loans under the Fed’s emergency repo loan operations that began on September 17, 2019 – months before there was a COVID-19 case in the United States or anywhere else in the world. Repos (repurchase agreements) are a short-term form of borrowing where corporations, banks, securities firms and money market mutual funds secure loans from each other by providing safe forms of collateral such as Treasury securities. Repos are supposed to function without the assistance of the Federal Reserve. But on September 17, 2019, the oversized demand for the repos and the lack of available funds to meet the demand drove the overnight interest rate on repo loans to an … Continue reading

Senate Banking Chair, Sherrod Brown, Gives Fed’s Quarles a Scathing Bon Voyage

Randal Quarles

By Pam Martens and Russ Martens: October 14, 2021 ~ Yesterday was the last day that Randal Quarles served in the post as Vice Chair for Supervision at the Federal Reserve. Senator Sherrod Brown, the Chair of the Senate Banking Committee that oversees the Federal Reserve, used the occasion to send a scorching letter to Fed Chair Jerome Powell assessing Quarles’ performance in the job, which began on October 13, 2017. Brown wrote: “When Vice Chair Quarles was confirmed to his position, banking lobbyists cheered. Not only did he immediately set out a plan to shift post-crisis rules to benefitting industry interests over protecting working families, he dutifully continued his deregulatory efforts even as the economy was shaken by a global pandemic. I am deeply concerned about these efforts during a global economic crisis.” But it’s not just deregulation that has been a problem with Quarles and Powell at the helm of … Continue reading

When It Comes to Frauds, Wells Fargo Is on the Bunny Slope Watching JPMorgan Hop Moguls on the Black Diamond Trail

Hannah Lang, Reporter for American Banker

By Pam Martens and Russ Martens: September 23, 2021 ~ There was a strange occurrence at Fed Chairman Jerome Powell’s press conference yesterday. Hannah Lang, a reporter for American Banker, asked Powell a question about Wells Fargo. Powell read his answer directly from a script in a binder he had on the podium. (You can watch the exchange in the video clip below. Be sure not to miss the exchange that follows Lang’s question when Mike Derby of the Wall Street Journal grills Powell on the outrageous trading that Dallas Fed President Robert Kaplan was doing last year to enrich himself (while his country was in a declared National Emergency and pandemic crisis). Lang mentioned that Senator Elizabeth Warren had cited “what she called ungovernable behavior” from Wells Fargo and called for Powell to break up the bank by revoking its bank holding company charter.  Lang asked  under what circumstances the … Continue reading

Quietly, JPMorgan Chase Has Been Battling Another Felony Charge – This Time for Tax Fraud in France. Its Defense Is Its “Human Rights” Have Been Violated.

Thierry Marembert, an Attorney for JPMorgan Chase in Wendel Tax Fraud Case

By Pam Martens and Russ Martens: September 1, 2021 ~ JPMorgan Chase is the bank that gambled with the bank deposits of moms and pops across America in 2012 by trading exotic derivatives in London and losing $6.2 billion in the process. It’s also the bank that admitted to two felony counts in 2014 for its role in facilitating Bernie Madoff ripping off the life savings of thousands of more moms and pops across America. Its rap sheet of ripping off the little guy reads like that of an entrenched crime family. But when the bank was indicted in France on April 16, 2015 for being complicit in tax fraud, it had the temerity to appeal the charges on the basis that its “human rights” had been violated, along with various codes of criminal procedure. Its argument boiled down to this: it hadn’t been advised that it had the right to … Continue reading