Jamie Dimon's Raise Proves U.S. Regulatory Strategy is a Joke - By MATT TAIBBI

[kpete]

If you make a big show of punishing someone, and when you're done they still don't think they have a behavior problem, you probably picked the wrong punishment. Every parent on earth knows this implicitly – but does the Obama White House finally get it, too, now, after Jamie Dimon's raise?

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Chase's responses to Holder's record penalties have been hilarious. Their first move was to make sure people outside the penthouse boardroom took on all the pain, laying off 7,500 employees and freezing salaries for the non-CEO class of line employees.

Next, Chase's board members sat down, put their misshapen heads together, considered the impact of this disastrous year of settlements, and decided to respond by more than doubling the take-home pay of the executive in charge, giving Dimon about $20 million in salary and equity.

In the end, the fines left the decision-making class of the company not just uninjured but triumphant. Dimon's raise was symbolic of a company-wide boost in compensation following the mass layoffs, as average per-employee expenses rose four percent overall, to $122,653, despite the $20 billion burden imposed upon the firm by the state.



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[democratisphere]

1. Damn, the banks in this country are so horrendously corrupt.

7,500 employees are sacrificed, then Jamie Dimon is insanely rewarded for his in your face, lousy and corrupt leadership. What is wrong with US?

[malthaussen]

16. You're not looking at it from the right viewpoint.

Mr Dimon made a lot of money for the company. That is what they want him to do. They would like him to continue doing it.

Corruption? How? A corporation exists to make money. Period.

What's wrong with the US, you ask? Easily answered: we have corporations.

-- Mal

[democratisphere]

28. My 'left' viewpoint is accepted by others. How corrupt is JD? Let me count the MANY WAYS!

Your 'right' viewpoint believes it is OK to make money at any and all costs; human, legal and otherwise.

http://www.forbes.com/sites/adamhartung/2014/01/24/jamie-dimons-undeserved-pay-raise-indicates-an-ineffective-jpmc-board/

http://www.shiftfrequency.com/matt-taibbi-jamie-dimons-raise-proves-u-s-regulatory-strategy-is-a-joke/

http://money.cnn.com/2014/01/24/news/companies/dimon-pay/

[malthaussen]

30. Proves the government is corrupt.

Last edited Sun Feb 2, 2014, 12:53 AM - Edit history (1)

Or that its regulations are a joke, which everyone on the JPM board already knows.

A corporation cannot be "corrupt" because a corporation does not exist to serve the public and is not subject to public oversight. It exists to make money for its shareholders and is answerable only to them.

Now, laws and regulations may be enacted to restrict the ability of the corporation to fulfill this single task. When the corporation violates these laws or regulations, they are not "corrupt," they are "criminal," and should be made to answer as criminals.

If the government chooses not to make these corporations answer for their criminal activity, or cuts a deal whereby the consequences of such activity do not outweigh the advantages of the criminal activity, then it is the government that is corrupt, not the corporation. It is the government which is not living up to a minimal expectation, namely to protect the citizens from predators.

Corporations are predators. At best, symbiotic organisms, but only if held carefully in check. This we have manifestly failed to do.

-- Mal

[democratisphere]

31. "Corporations are predators." Corporations are corrupt.

"A corporation cannot be "corrupt" because a corporation does not exist to serve the public and is not subject to public oversight. It exists to make money for its shareholders and is answerable only to them."

This "New World Order" corporate mission statement clearly defines where corporations have gone horribly wrong. Companies and corporations used to exist to "serve the public" (customers) by providing quality products and services at reasonable prices. The "New World Order" corporate view trashes the public (customers) by providing cheap and low quality products and services at ever increasing outrageous prices so that the IDOLIC and LAUDED shareholder can reap all the wealth and benefits. Corporations are parasites that are sucking the life out our economy, standard of living, families, national security and the like. That in itself is corrupt.

[abelenkpe]

17. Heads of corporations are all the same

Last year over 300 artists were laid off from dreamworks, their jobs offshored and then the very top gave themselves raises. It's a pattern that's been going on for the last 15-20 years in pretty much every industry.

[cali]

2. uh, This Administration has been very good to the bankers

President Obama is a good friend to corporations. It's so absurd not to recognize this fact.

[el_bryanto]

3. Generally true; but they did set out a record fine against Chase

It doesn't seem to have had the desired effect, and Obama has no stomach for going further.

Bryant

[Swede Atlanta]

7. Yes and those fines can be deducted as a business expense on the corporate tax filing....

These guys will never personally suffer when it comes to monetary fines.

As we saw here they will lay people off, reduce bonuses for all but the very top of the top, reduce salaries and benefits and, if necessary, take it out on their shareholders.

They will personally always be sure they are protected and will continue to be the fat cats in a new gilded age.

The problem with large corporations like this is that the largest shareholders are usually institutional investors who are in league with management. So there will never be a real opportunity for the average shareholder to vote to hold the management team accountable.

The other side of this is...for investors if the company can shrug this off by screwing everyone else and continue to bring home profits and increased share value, shareholders really don't care.

We are in a new "me, me, me" age that has no room for what is right and wrong, what is moral or immoral. It is all about money and more money. It is a disease and for many of us we see it as the sin of greed.

[closeupready]

11. Also, institutional investors are known as 'dumb money' -

big money looking for good returns, and easily fleeced.

[sabrina 1]

24. Crimes were committed, fraud, corruption but no one was held accountable

Fines are for misdemeanors not massive crimes that destroy millions of lives. This country should have done what Iceland did. THAT is how you handle crimes against the people, and their handling of it has ensured that no Banker, like Dimon eg, is going to be rewarded for the corruption.

They factor in fines as part of doing business which is to me, a pre-meditation of corruption.

Bailing them out was the stupidest thing to do.

[Enthusiast]

26. They set a record fine against Chase because there was record setting malfeasance.

[Ichingcarpenter]

4. What Do Jamie Dimon's Cufflinks Tell Us About the Financial-Industrial Complex?

http://www.motherjones.com/kevin-drum/2012/06/what-do-jamie-dimons-cufflinks-tell-us-about-financial-industrial-complex

[democratisphere]

6. The equal of Diplomatic Immunity.

Corruption and malfeasance get a pass.

[Oilwellian]

8. Thanks for the reminder

I had forgotten about that eye-opener.

[truebrit71]

12. I think the answer is fairly self-evident, no?

"You fuck with us we crash the economy"...

[colorado_ufo]

13. It's not a message; it's a prophecy

on his part.

[Spitfire of ATJ]

20. If the Elder Bush gave him those the message is, "Want the CIA to poison your bottled water?"

[daleanime]

5. K&R....

[marmar]

9. k/r

[ctsnowman]

10. And the cons

wanted to make him part of the advisory committee on how to reform the system.

[polichick]

14. Always happy to read something...

from Matt Taibbi.

[abelenkpe]

15. K&R

[Spitfire of ATJ]

18. Fuck fines. These people need to be JAILED.

[1StrongBlackMan]

21. Would it to be that simple ...

I'm pretty sure that someone going to jail will not be enough ... it must be the Dimons of the world and/or their enabling Board of Directors.

The problem is send them to jail for what? The legal system (rightfully) holds that in order to jail someone, one must PROVE that they engaged in, had knowledge of, or willfully ignored, wrong doing. That would be a pretty easy case to prove for any number of lower/mid-level employees; but a much harder case to bring against the actual shot callers.

[Spitfire of ATJ]

22. Iceland managed to do it.

[SMC22307]

35. They're small, and white. I mean, homogenous.

Won't work in the United States.

Those are a couple of excuses offered up by some on DU...

[Spitfire of ATJ]

37. Funny how the banks didn't take revenge and boycott their money.

[snot]

32. We also did plenty of it in the 80's after the S&L meltdown.

[SMC22307]

36. Indeed, we did. (n/t)

[1StrongBlackMan]

19. No ...

I would say Dimon's raise says less about the regulatory system than it gives lie to the whole concept of Board of Directors' serving as the protectors of share-holder value.

The simple fact is some villains (in this case, the Chase Board for giving and Dimon in taking, the raise) do not modify their conduct, i.e., learn, from punishment. This is no different from any other recidivism matter; for some, no matter the punish, they will re-offend.

I do, however, agree that until the Dimons and the Boards of Directors pay a personal cost, their conduct, and attitude, is likely to change.

[yurbud]

23. this is why the bailout should have at least had the condition of the top execs resigning

and having their passports revoked pending the filing of charges.

[sarcasmo]

25. Greed be thy name.

[applegrove]

27. Like a cult of personality these CEOs are these days.

[snot]

29. K&R'd!

[woo me with science]

33. K&R

[Octafish]

34. Jamie Dimon's a steal.

All class, too.

[woo me with science]

38. kick