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Chase's Dimon Wins Despite (Or Thanks To?) Lengthy Rap Sheet

by Abby Zimet

Shareholders of JPMorgan Chase have reportedly declined to strip Jamie Dimon of his title as mega-fat-cat Chairman/CEO of the ultimate too-big-to-fail-or-God-forbid-jail Chase, despite an unending stream of reports of illegal activities, an upcoming Senate hearing on one $8 billion scandal, and an astonishing new 45-page report, “JPM – Out of Control,” documenting case after case of fraud and abuse, from foreclosure fraud and Bank Secrecy Act violations to money laundering for drug cartels and obstruction of justice, resulting in a company that's essentially "a criminal racket just days away from imploding, were it not propped up by implicit bailout guarantees and light-touch regulators." Yeah, sure, let's keep the guy who ran it.

A partial list of Chase abuses for which it has been subject to fines, consent orders or regulatory action:

Bank Secrecy Act violations;
Money laundering for drug cartels;
Violations of sanction orders against Cuba, Iran, Sudan, and former Liberian strongman Charles Taylor;
Violations related to the Vatican Bank scandal (get on this, Pope Francis!);
Violations of the Commodities Exchange Act;
Failure to segregate customer funds (including one CFTC case where the bank failed to segregate $725 million of its own money from a $9.6 billion account) in the US and UK;
Knowingly executing fictitious trades where the customer, with full knowledge of the bank, was on both sides of the deal;
Various SEC enforcement actions for misrepresentations of CDOs and mortgage-backed securities;
The AG settlement on foreclosure fraud;
The OCC settlement on foreclosure fraud;
Violations of the Servicemembers Civil Relief Act;
Illegal flood insurance commissions;
Fraudulent sale of unregistered securities;
Auto-finance ripoffs;
Illegal increases of overdraft penalties;
Violations of federal ERISA laws as well as those of the state of New York;
Municipal bond market manipulations and acts of bid-rigging, including violations of the Sherman Anti-Trust Act;
Filing of unverified affidavits for credit card debt collections (“as a result of internal control failures that sound eerily similar to the industry’s mortgage servicing failures and foreclosure abuses”);
Energy market manipulation that triggered FERC lawsuits;
“Artificial market making” at Japanese affiliates;
Shifting trading losses on a currency trade to a customer account;
Fraudulent sales of derivatives to the city of Milan, Italy;
Obstruction of justice (including refusing the release of documents in the Bernie Madoff case as well as the case of Peregrine Financial).