JP Morgan has set aside another $1 billion to cover penalties for manipulating the foreign exchange market. The bank has paid out billions over regulatory violations and lawsuits in the last two years from the “London Whale” trading scandal to fraudulent sales of mortgage backed securities.
Meanwhile, Jamie Dimon, Wall Street’s darling, remains firmly in command of the fraud infested bank. It doesn’t seem to bother investors how banks make money, as long as the returns keep rolling in. Fines and penalties are merely a cost of doing business.
Back in the days when people were stigmatized for committing fraud, Dimon would have been out the door years ago. Now he is rewarded with oversize bonuses, stock options, and tons of perks. And the fines that JP Morgan has paid out have not gone to the victims; they have gone to the regulators instead.