View Full Version : JP Morgan makes $920m London Whale payout to regulators...

19th Sep 2013, 15:33
JP Morgan makes $920m London Whale payout to regulators (see here (http://www.bbc.co.uk/news/business-24159801))

These phenomenol amounts (fines) running into several hundreds of million US$ are becoming a regular feature on the landscape most recently.

Where does the money all go? Does it end up in the government coffers available for "general use"? Does it end up in the special coffers governments reserve for their re-elections? Does any of it end up in the hands of those who actually suffered any financial abuse / losses?

Does anyone here know if "special bonuses" are paid out to employees of these regulators as a reward? Or do they all merely seek to preserve their already "over-generous" entitlements, whether or not related to pensions etc.? We have a right to know. :mad:

19th Sep 2013, 16:52
Couldn't happen to a nicer bunch.

My firm has paid out a fair amount of wedge recently but not my area. As far as JPM goes, when I was a dashing young blade, new to dealing I had a line in there. One bloke had a weally weally bad pwoblem with his Rs.

He said to me, "I have tewwible twouble with my Rs."

I said to him, "Don't worry they do special cushions for folk like you nowadays." Boom boom!

Not amused. Line out. :ouch:

19th Sep 2013, 17:42
I assumed they were rogues of the highest order when they took on Blair as a 'consultant'.

s e t h
19th Sep 2013, 20:02
standard practice throughout civilization forever...biggest thug always gets a cut of the smaller thugs 'business'

20th Sep 2013, 04:09
$920M is just loose change to global financial traders such as JP Morgan. The profits they have made with their illegal dealings would cover this amount 100 times over.

20th Sep 2013, 05:39
From a CNN article;

"The fine money will be split among regulators, with $300 million going to the Office of the Comptroller of the Currency, $200 million going to the Securities and Exchange Commission, $200 million to the Federal Reserve, and $220 million to the U.K. Financial Conduct Authority.

The money paid to regulators will likely all end up in the general coffers of the U.S. Treasury and U.K. Finance Ministry and will not increase or fund regulators' budgets.

The SEC does have the ability to use some of the fine money to compensate investors who can prove they were hurt by JPMorgan's actions.
But no such trading losses have yet been established. The money-losing trade was made with JPMorgan funds, not customers' assets. None of the bank's customers were hurt by the trading."

What is not addressed in the CNN article, is;

1. No CEO or high-ranking senior executive of any financial institution has ever been blamed for any financial institution losses, nor have they ever been charged with any offences.
The blame is always placed on a low-level trader, and his "failure to follow company regulations and instructions".
Nothing is ever done about poor financial institution (senior) management, oversight, and controls, that allows this kind of thing to happen.

2. The trust of the public, always low in the case of financial institutions, is now pretty much at rock bottom.
There's much talk of the "re-inforcement of the principles of ethics" in these institutions - but very little changes.
The simple fact is that ethics and morals are totally non-existent within these organisations, and always have been.