Could someone please explain to me how a 153.6 Million Dollars fine to JP Morgan Chase & C., whose reported Net Income for 2010 was 17,370. Million Dollars actually punishes the company? The Material impact on their bottom line is less than 1 percent of 2010 net income.
What kind of “Hard Working” lawyers does the SEC have on their staff? My best guess is lawyers that want to work for JP Morgan, when they get tired of the their current gig, and have built up enough brownie points to get hired by JP Morgan.
Other than a promise that JP Morgan Chase & Co. will cross their heart (If they actually have one) (Wait corporations don’t have hearts, yet they are afforded rights as if they were human), never ever do this again. What assurances do we really have that they will not turn around and do it again?
I know it is the ever-vigilant and timely United States Security Exchange Commission. You know the groups whose motto is “Vel caecus interdum can reperio a lamnia lammina lamna”, (Even the Blind sometimes can find a coin). This is the government agency with something like 3700 full time employee, whose budget in 2010 was 1,571 Million Dollars. Note that the SEC budget does not exceed the 10 percent of JP Morgan Chase & Co. Net Income for 2010. JP Morgan Chase and Co. employees alone outnumber the SEC employees 65 to 1. Add in Citicorp, Bank of America, …etc., well you get the picture. The SEC is like 7th Calvary at the battle of Grease Grass (Little Bighorn), where the famous refrain of the day was “Where did all the dam Indian come from”.
Oh, and all of these games took place in 2007, let see it 2011. Three and half years to find the incident, and to come to some type of agreement on the subject where the pertpatrator did not admit any guilt or wrong doing, but just handed over a small token to get the morons out of their offices, not bad for a government agency who as far as I can tell main function is lip service.
JP Morgan Chase & Co. is only one of the companies that this commission is chartered to provide over site on. What kind of job are they really doing? I am sure that most of the employee’s are well past trying to drain the swamp, past trying to killing all of the Alligators, past the point of even trying to kill just one small Alligator, and more in the mode of just trying not to get eaten by the Alligators.
When dealing with any institution that is regulated by the SEC, a word to the wise “Caveat emptor”. Remember the 15 Qualified Investors who were really outside of the sphere of the normal JP Morgan Chase & Co. clients, (Most of those clients told them to go away on the Squared CDO), that bought the crap from JP Morgan Chase and Co. called “Squared CDO”.