J.P. Morgan "borrows" $750 million from unwitting customers

[panAmerican]

Source: Chicago Tribune

Back in the pre-bailout days when big commercial banks were riding high, the giant J.P. Morgan Chase helped itself to $750 million in customer funds without telling anybody about it for days.

That's the finding in a Commodity Futures Trading Commission investigation that resulted this week in a $300,000 settlement -- raising questions about how one of Wall Street's survivors is keeping its books.





Read more: http://newsblogs.chicagotribune.com/burns-on-business/2009/09/jp-morgan-borrows-750-million-from-unwitting-customers.html

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$300,000 fine for co-mingling $750,000,000 of customers' monies?!

Also note the timeline: the violation occured and was reported in 2007, but the fines and public disclosure more than 2 years later.

[MineralMan]

1. WTF? Jail time, anyone?

I guess not...

[tabatha]

2. They are now Chase.

Avoid like the plague.

[metapunditedgy]

6. Have you seen the ads they're running for Chase Bank?

"A new era in banking" and all that. It's revolting.

[tabatha]

11. Yes, pukeworthy.

[DontTreadOnMe]

3. $300K Fine...

White Collar Crime does pay.

$750 Million divided by $300K = .0004%

Does anyone know where I can get a .0004% loan... on 750 big ones?

[Warpy]

4. They made money the old fashioned way!

They stole it.

[panAmerican]

7. Don't forget the $29B they got handed for BearStearns a year ago

[SUMMERTREE2]

5. The irony of it

I bet that the executive who thought of using customers funds receive a bonus that was considerably larger than the fine.
:puke:

[strategery blunder]

8. If this doesn't start a bank run, I dunno what will.

I imagine customers don't like to hear their money on deposit got blatantly stolen like that.

Now watch the Murikan press bury the story on page B19 of the Saturday paper. :grr:

[panAmerican]

13. I would have expected the Left press to be all over it

But so far it's stayed under the radar. There was not even mention of "neither admits nor denies wrongdoing". I guess that's reserved for after legal action is taken, and it baffles me why the regulatory agencies wouldn't have brought suit.

[strategery blunder]

16. Left press? LOOOOOOOOOOOOL

You mean the same Left press that slurped W's weapons of mass destruction propaganda and Saddam Hussein's alleged links to Al-Qaida right up in the run-up to the Iraq war, even though such was a complete fabrication?

The same Left press that turned a blind eye while Republikkkans slandered Senator Kerry's war record in 2004?

The same Left press that trolled for right wing freeper disruptors at town hall meetings shouting out nonsense about "death panels" just for the ratings?

I'm sure other DUers can add lots of good stuff to this...come on now, let's make a list! :evilgrin:

[Odin2005]

9. This is blatant theft!

:grr:

[Enrique]

10. talk about easy credit! n/t

[FarCenter]

12. On a high volume day JP Morgan Chase moves over $2 trillion

[Trillo]

14. Maybe it was a mistake, maybe not.

About 1 year later, taxpayers were on the hook for, what was the figure, 900B? That's a lot more than 750M.

I think the calls for an audit of the Federal Reserve are right on the money. There could me more in this story than just smoke.

But it could also just be "comingling" of funds, which isn't theft and disappearance.

[lurky]

15. Even with the fine, I bet they made a huge profit.

Look at it from their perspective: If they don't get caught they make money. If they do get caught they make only slightly less money. For an amoral person (i.e. a successful corporate bank executive) it's a no-brainer.

Now, if one of us were to "borrow" 3/4 of a billion dollars from Chase, I'm guessing the consequences might be a little different...