Robert Reich JPMorgan Chase, the nations largest bank, is proving its too big to be managed responsibly. Not only is it coughing up $13 billion to settle lawsuits over predatory lending practices and sales of mortgage-backed securities, but its facing charges for conspiring in Bernie Madoffs Ponzi scheme, losing investors $6 billion in illegal gambling (through its London Whale), bribing or influence-peddling in China in violation of the Corrupt Practices Act, and at least a dozen other illegalities. Yet the fines its paying, or will have to pay, only hurt JPMorgans investors -- including big pension funds and university endowments, many of whom lost money directly from JPMorgans skullduggery in the first place. Struggling homeowners who are still underwater because of what JPMorgan and other big banks wrought wont see a dime. Yet those who have reaped the biggest personal gains -- including CEO Jamie Dimon (who arranged a special private audience with Attorney General Eric Holder to settle some of this, a privilege not accorded most people being investigated by the Justice Department) and his top executives -- wont face criminal charges, on the dubious theory that no individual at JPMorgan is criminally responsible for any of this. Im sorry, I dont buy it. No senior Wall Street executive has been held publicly accountable for anything. If nobody is responsible, then JPMorgan and Wall Streets other giant banks are too big to be managed responsibly. In which case they should be broken up and their size capped so they can make profits without imposing huge costs and burdens on the rest of us.
Posted on: Sun, 27 Oct 2013 20:55:15 +0000
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