Thursday, March 21, 2013

Is JPMorgan Chase America's New Bad Bank?




From Forbes: "...The steady stream of negative news, congressional appearances and scathing Senate reports  is something more familiar to the likes of Bank of America, Citigroup and Goldman Sachs than JPM; but now Dimon & Co. are forced to play defense much more often.

 “….It’s the tone-deafness of comments like Dimon’s ‘tempest in a teapot’ remark that is staggering,” says Cornelius Hurley of Boston University’s Center for Finance, Law & Policy.

"It’s not just its massive London Whale trading loss that has JPM in a funk. Consider yesterday’s $107.5 million settlement with MF Global trustee, James W. Giddens. JPM was MF Global’s clearing bank before it failed and lost $1.6 billion in client money in October 2011. Giddens threatened to sue JPM last year if it didn’t return funds that belonged to MF Global customers which he said the bank received in the final days before the bankruptcy.  The pact with MF Global customers clears up one of JPM’s bigger legal problems but as Steve Schaefer points out it’s just one of many headaches for Dimon’s behemoth bank these days….."

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