The criminal case against two former JPMorgan Chase & Co (JPM) traders who were accused of concealing billions in losses was closed in U.S. court after a key witness known as the “London Whale” pointed fingers at the bank’s top executives, the Wall Street Journal reported.
The London Whale, whose real name is Bruno Iksil, said the bank’s CEO Jamie Dimon and his executives were responsible “much, much more than [Iksil’s] two colleagues could ever be.” The two, Javier Martin-Artajo and Julien Grout, faced charges for their roles in a 2012 trading debacle that cost JPMorgan over $6 billion.
By William K. Black
July 24, 2017 Kansas City, MO
Jamie Dimon talked about his personal pain recently using the exact phrase that many of us have used to explain his personal anguish that “It’s almost an embarrassment to be an American citizen traveling around the world and listening to the stupid sh—t we have to deal with in this country.” The Wall Street Journal’s “Market Watch” described Dimon’s fervor.
“J.P. Morgan Chase & Co.’s outspoken CEO on Friday broke into an impassioned, expletive-tinged rant.”
The WSJ, in the introduction of an online video interview of Paul Gigot, its editorial page editor, termed it a “remarkable diatribe.”
Most United States readers share Dimon’s embarrassment at President Trump’s actions and words and can empathize with Dimon’s rant. Except, Dimon was not ranting about Trump’s actions and words that have dishonored America and everything that once made America great. Dimon launched his diatribe because Trump has been too slow in completing the destruction of those things that once made America great. The WSJ was praising, not criticizing, Dimon when they described his statements as an “expletive-tinged rant” and a “remarkable diatribe.”
Dimon said U.S. growth was held in check by a lack of policy momentum in D.C. that has failed to deliver a spate of pro-growth legislation that could help to boost an otherwise sluggish economy. “We have to focus on policy that is good for all Americans,” Dimon said, speaking Friday morning on a call with reporters to discuss earnings.
When Dimon calls for “policy that is good for all Americans,” one can be sure that he is calling for policies that will be great for Dimon and terrible for nearly all Americans. The context is that Dimon was complaining that U.S. growth was too slow.
Bruno Iksil, the former JPMorgan Chase & Co (JPM.N) trader at the center of the “London Whale” trading scandal, has accused the Wall Street bank’s Chief Executive James Dimon of laying the ground for the $6.2 billion loss.
In an account on his website, Iksil, a French national who traded credit derivatives for JPMorgan in London, also blamed senior executives at the bank. (bit.ly/2sjf2WS):
- What is the purpose of this website?
The “London Whale” case is a huge trading scandal that occurred at the CIO of the US bank Jp Morgan in second quarter of 2012. It is not pictured correctly by any public report so far. There are topics that investors, employees, and the public in general should be aware of :
- The bank Jp Morgan had long ordered the controversial trades that would cause the scandal in 2012. Whatever the loss that burdened its CIO unit, irrespective of the “element of surprise” that the bank may allege, the firm as a whole made much, much more money through the event. The senior executives knew their actions were border line though since 2010 at the latest. Some events in 2009 and early 2010 are important clues to that: the VAR reports changed in September 2009, Bill Winters was fired abruptly next, a “cushion/reserve” of $300 million was ignored by CFO in December 2009, the book had to be “killed” on the follow in January 2010, Dimon and Cavanagh came to visit CIO London but not Iksil in early March 2010, new liquidity reserve rules were enacted in late March 2010 but were next not enforced, Cavanagh the then CFO suddenly changed cap in June 2010, the CFO of CIO left 4 months later for undisclosed reasons in November 2010, right when Iksil got a “chocolate medal” promotion. Regulators sent warning letters precisely then….
- The senior executives chose indeed “Iksil” to work as a “screen” for them in late 2010. It was a complete setup manufactured around RWA projective but pointless modeled reductions and misleading risk reports about stress test limits breaches. The executives promoted “Iksil” without changing his role and responsibilities. They gave him quite specific paradoxical orders despite his alerts all along 2011 and 2012. They finally left his name being relentlessly placated through the media starting on April 6th 2012 as things were just getting worse and worse for them.
- Some authorities have not performed their duty, far from it as the public reports show for those who know the case in depth. The “screen guy” complains against the UK regulator today, namely the FCA with good reasons. It may not stop at the FCA…
- At the end of the day about $50 bln changed hands in the second quarter 2012 between a mass of investors and some “happy insiders”. Jp Morgan made about $25 billion or more on the event for itself as its public accounting reports show through the generation of what is called “tangible capital” or “hard capital” (10-Q and 10-K reports filed with the SEC).
- One may summarize the trading scandal as: when the CIO of JP Morgan had lost $1 billion dollar, Jp Morgan as a whole had made $4 billion for itself net of its CIO loss. The Jp Morgan CIO lost in whole $6.3 billion which led to an ultimate profit at Jp Morgan of more than $25 billion in 2012.
JPMorgan Chase Chairman and CEO Jamie Dimon highlighted several critical issues confronting the United States during the bank’s annual shareholder meeting Tuesday and urged the business community and the Trump administration to come together to find meaningful solutions to these problems.
During Q&A with shareholders, Dimon was asked multiple questions related to his willingness to support President Trump. The CEO is on Trump’s Strategic and Policy Forum.
In the answer to a question related to Trump’s tighter immigration policy, Dimon took a moment to address the elephant in the room that kept coming up.
“He is the President of the United States. I believe he is the pilot flying our airplane,” Dimon said, “I would try to help any President of the United States because I’m a patriot.”
JPMorgan Chase & Co Chief Executive Jamie Dimon devoted one-third of his annual shareholder letter to arguments for changing regulations, particularly those on bank capital and liquidity, as well as home mortgage loan financing.
Current regulations are inconsistent and have left banks with “too much capital,” some of which could be used to “finance the economy without sacrificing safety,” Dimon said in the 17,349-word letter released on Tuesday.
He also warned that anti-trade policies could be disruptive and geopolitical risks are in a “heightened state.”
Stay classy, Jamie…
JPMorgan (JPM) CEO Jamie Dimon says the economy might be getting stronger, but there’s one segment that needs a lift.
“I think if you have a general recovery in the economy, it helps everybody,” he said during an interview with the FOX Business Network’s Maria Bartiromo.
“Everyone complains now middle class incomes aren’t going up enough and very often people say things that are not true,” he said. “This one happens to be true.”
Dimon, living the thug life…
JPMorgan Chase CEO Jamie Dimon says Donald Trump should not be vilified for putting business people in his White House and that the choices provide a “good reset” for how businesses are viewed
After a campaign filled with attacks on the wealthy and powerful, the president-elect has picked three alumni of the powerful financial firm Goldman Sachs, several billionaires and two chief executives of major American companies for his administration. Trump has defended his picks, saying they know how to create jobs.
Dimon, who will head Trump’s Business Roundtable, said in a Bloomberg interview published Thursday that he was “dead wrong” before the election by thinking Wall Street would have a hard time getting into the next administration. He had expected the next president to be Hillary Clinton.Now, he says he is optimistic about Trump’s business-heavy administration.
As recently as September, you thought it would be difficult for people on Wall Street to get into the new administration. Now, President-elect Donald Trump has tapped several Wall Street figures.What do you think they’re going to bring that is different?
Obviously, I was dead wrong about that. I think if you are going to be president, you should have the best people sitting around a table. I think it’s a mistake for the American public to constantly be told that if you work for an oil company or you work for a bank, that automatically makes you bad. I think a lot of these people are very qualified people who are patriots. They’re going to want to help the country. They’re not going to try to help their former company. These are people with deep knowledge that will hopefully do a great job.
Hold off on the balloons and cake for Jamie. He’s off of Trump’s list.
It’s probably safe to say that JPMorgan Chase CEO Jamie Dimon won’t be the treasury secretary after all.
Wall Street has been abuzz for the past two weeks with speculation that the 60-year-old head of the largest U.S. bank by assets would run the Treasury Department for President-elect Donald Trump. CNBC reported on Nov. 10 that advisers close to Trump were suggesting Dimon for the vital Cabinet role.
However, a source speaking to NBC News said a Dimon appointment is not going to happen.
In fact, Trump “doesn’t respect” Dimon, the source said, adding that the bank chief “was never under consideration” for the appointment and was not on “any Trump-approved list.”
That may be just as well considering that the sources who initially spoke to CNBC had indicated Dimon wasn’t interested anyway.
JPMorgan Chase & Co Chief Executive Officer Jamie Dimon did not support Republican Donald Trump’s presidential campaign, yet some Trump advisers want America’s most famous banker to become Treasury Secretary to calm nerves on Wall Street.
A member of Trump’s transition team contacted Dimon recently to see if he would be interested in the role, two people familiar with the matter told Reuters on Thursday.
It was not clear whether Dimon had responded, though he has said emphatically multiple times that he was not interested in the role. JPMorgan spokesman Andrew Gray declined to comment, and Dimon, who is traveling outside the United States, could not be reached.
Trump’s close circle of advisers includes several with Wall Street ties. His campaign finance manager, Steven Mnuchin, is a former Goldman Sachs Group Inc banker. Fundraiser Anthony Scaramucci is a hedge fund executive.
A person familiar with Trump’s personnel efforts said the transition team’s list included Dimon, Mnuchin and Rep. Jeb Hensarling. The person said that Mnuchin was a more likely choice given his proximity to Trump.