I don’t usually swear in the header. But this time it’s appropriate.
The head of JP Morgan has delivered a furious tirade against “banker bashing”, complaining that the entire industry is being tarred with the same brush and implying that bankers have become political whipping boys.
Oh on the contrary.
There are a lot of local banks and credit unions that did nothing wrong, and they are in fact honorable people. I bank at one of them, a local credit union.
I single out for my criticism financial institutions that do things like attempting to prevent disclosure of a lawsuit alleging fraud and double-dipping, the latter amounting to theft of investor funds.
Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering.
Remember that…. from two days ago?
The lawsuit’s supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a “sack of shit.”
From the actual traders?
Telling their superiors that they were selling Ambac “A sack of shit“?
We shouldn’t “criticize” or even “bash” bankers for doing things like that?
Screwing people is supposed to be beyond reproach?
And we definitely shouldn’t bash bankers for trying to cover up that lawsuit, because, well, the people who were alleged to be responsible might still be working in the mortgage business, right?
They say senior traders under Tom Marano, who was a Senior Managing Director and Global Head of Mortgages for Bear and is now CEO of Ally’s mortgage operations, were pocketing cash that should have gone to securities holders after Bear had already sold them bonds and moved the loans off its books.
Mike Nierenberg, who ran the adjustable-rate mortgage trading desk at Bear and is now the head of mortgages and securitization for Bank of America, was a key player ensuring the defaulting loans Bear was buying would move off their books right after they bought them, with little concern for the firm’s due diligence standards. He was joined in this scheme by Jeff Verschleiser, his peer and Senior Managing Director on the mortgage and asset-backed securities trading desk and head of whole loan trading. He is now an executive in Goldman Sachs’ mortgage division.
Aw crap, it appears, if The Atlantic’s reporting is correct, that it is true!
If I rob a bank, can I get a job as a bank teller after I get out of prison? After all I’m a very trustworthy person who can work industriously in a banking environment…. as proven by the fact that I already know how to rob banks!
If not, can you explain why your bank tried to keep the public – and investors – from knowing that the people alleged to have robbed the bank’s clients are still working in a banking capacity all over Wall Street?
It’s just a question Jamie.
I don’t expect that you’ll answer it.