Living the thug life…
The bosses of two of Wall Street’s biggest banks received a $314m (£241m) windfall last year as the value of their shares soared after Donald Trump’s victory in the US presidential election.
Jamie Dimon, who is chairman, president and chief executive of JP Morgan, and Lloyd Blankfein, the chief executive of Goldman Sachs, each saw their stock and options rise by more than $150m, new figures compiled by consultancy Equilar for the Financial Times show.
US bank shares jumped in the aftermath of Mr Trump’s win on 9 November, as investors predicted Wall Street-friendly policies and increased spending from the new administration.
Deutsche Bank AG and JPMorgan Chase & Co have agreed to pay a combined $148 million (114 million pounds) to end private U.S. antitrust litigation claiming they conspired with other banks to manipulate the yen Libor and Euroyen Tibor benchmark interest rates.
The preliminary settlements, totalling $77 million for Deutsche Bank and $71 million for JPMorgan, were detailed in filings late Friday in the U.S. District Court in Manhattan, and require a judge’s approval.
They followed similar settlements last year with Citigroup Inc and HSBC Holdings Plc totalling $23 million and $35 million, respectively.
U.S. prosecutors have decided to drop criminal charges against two former JPMorgan Chase & Co derivatives traders implicated in the “London Whale” trading scandal that caused $6.2 billion (5 billion pounds) of losses in 2012.
In seeking the dismissal of charges against Javier Martin-Artajo and Julien Grout, the Department of Justice said it “no longer believes that it can rely on the testimony” of Bruno Iksil, a cooperating witness who had been dubbed the London Whale, based on recent statements he made that hurt the case.
Prosecutors also said efforts to extradite Martin-Artajo and Grout, respectively citizens of Spain and France, to face the charges have been “unsuccessful or deemed futile.”
Minneapolis City Council members are calling for JPMorgan Chase to sever its ties with the Trump administration and divest from private prisons and immigration detention centers, the latest move by city leaders to push against the administration from a local level.
Council Members Elizabeth Glidden, Cam Gordon and Lisa Bender sent a letter to JPMorgan Chase CEO Jamie Dimon on June 27 calling for the bank to withdraw from President Donald Trump’s business council, issue a statement against Trump’s “anti-immigrant, refugee and Muslim agenda” and stop financing private prison companies and immigration detention centers.
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.
The American Civil Liberties Union is accusing JPMorgan Chase & Co. of violating the Civil Rights Act by discriminating against fathers when they ask for parental leave.
The ACLU filed its complaint Thursday with the Equal Employment Opportunity Commission. If the EEOC finds merit in the case and the parties are unwilling to settle, it could give the green light to bring a federal lawsuit against the bank.
“For whatever reason, companies are not complying with the law, and we do hope that this case serves as a wake-up call,” said ACLU attorney Galen Sherwin.
JPMorgan said it received the complaint and is reviewing it.
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.”