Twenty years from now business schools will be teaching a course on How to steal big like J.P Morgan. While news organizations run stories for the largest fine ever paid by a U.S. corporation they are missing out one glaring fact. The U.S taxpayer is about to be paid back with their own money. J.P Morgan defrauded the markets for almost a decade and made hundreds of Billions in Profits and now they are being asked to give a tiny portion of the ill-gotten gain back.
It may be relevant to the issue that Bernie Madoff got 150 years for creating 18 Billion in loses. No one will ever go to jail for the hundreds of Billions J.P Morgan lost because they are better thieves with better lawyers.
Look at what has happened in the last five years and tell me if this isn’t a great lesson in stealing BIG:
1. JPMorgan’s $12 Billion BailoutBy DEALBOOK
2. Bailed out banks
The Treasury Department has invested about $200 billion in hundreds of banks through its Capital Purchase Program in an effort to prop up capital and support new lending. Here’s a list of the banks that got bailed out.
3. Profit Solid, J.P. Morgan Aims to Repay TARP Funds
June 17, 2009, 4:17 pm <!– — Updated: 3:55 pm –>
4. JPMorgan and 9 Other Banks Repay TARP MoneyBy DEALBOOK
Rank: 9 (Previous rank: 16) CEO: James Dimon Compare tool: J.P. Morgan Chase & Co. vs. Top 10
5. 5 Highlights From JPMorgan’s 2010 Earnings
Wall Street Earnings January 13, 2012, 7:21 am <!– — Updated: 1:00 pm –>
6. Weak Quarter Weighs on JPMorgan’s 2011 ProfitBy BEN PROTESS
7. Goldman & JP Are Still Tops—But Dimon Takes a Pay Cut
Jan 16, 2013 12:07 PM EST
8. JPMorgan’s $7 Billion In Penalty Payouts Dwarfed By Monstrous Profits (CHARTS)
9. JPMorgan’s $13 Billion Settlement: Jamie Dimon Is a Colossus No More
If you understand these 10 articles you will understand that this fine will not cost J.P Morgan a dime. When the U.S. tax payers gave J.P Morgan 25 Billion for the bailout we gave them the a five year head start for all of the fines they would later have to pay. These last five years have been the best in J.P Morgan history and 13 Billion is a drop in the bucket.
If more fortune 500 companies took the approach of stealing Billions and paying fines five years later I’m sure they would be more profitable. This is why I know this example will be taught in law schools and business schools around the world.
Wishing Wealth Wellness and Wisdom
Manager of Wealth