Just pay your fine now, we’ll tell you what you did wrong later.

Matt White

Slapping the hand of too-big-to-fail financial giant JPMorgan is, for lack of a better term, Bogus. That’s right. Bogus. In an attempt to “teach them boys a lesson” JP Morgan has announced that it is ready to pay off it’s fine; to the tune of $13 billion to the U.S. government–potentially one of the largest such settlements ever enforced.
Seems pretty harsh to you and I, right? So why am I complaining? In the fourth quarter of 2012 alone, JPMorgan earned $5.7 billion in profits. The also reported that they took in $99.9 billion in revenue and $21.3 billion in net income in 2012. JPMorgan managed to notch its third straight year of record profits despite enduring the most embarrassing loss in its history.
But that’s not the reason why. In fact, money has absolutely nothing to do with it.
Instead, anyone willing to read between the lines will see that this is just another example of smoke and mirrors orchestrated by the Department of Justice soap-boxing how tough it has gotten on banks, giving Main Street the warm feeling that Wall Street has finally paid it’s debt to society.
The financial marketplace is not a safer one Problem is, no new rules or guidelines have been implemented to make risky business and unsavory dealings illegal. One of the biggest travesties of the matter is the fact that no one knows exactly what the huge settlement is for, because the details haven’t been released.
JPMorgan was begged by the government in 2008 to buy up the troubled Bears and Stearn and WaMu firms, who were the REAL perpetrators responsible for catastrophic risky lending, in order to stabilize the financial crisis. I’m fully abreast to the notion that “you get what you pay for”; and JPMorgan knew that going into the transaction, which is why CEO Jamie Dimon set aside something like 24 Billion dollars in a rainy day fund to pay for these ill ventures when the tax man would inevitably come to collect.
That day has come…but with what resolve?
That is a very good question.