JP Morgan Chase to gets another reward for their theft

Most people are under the false assumption that the taxpayer bailout of Wall Street banks began and ended with TARP. They couldn't be more wrong.
The Wall Street bank bailout began with Federal Reserve subsidies in December 2007, and has continued in one form or another right up to now.

J.P. Morgan Chase & Co. is nearing a deal that would allow it to benefit from a tax refund of as much as $1.4 billion, becoming the latest company to tap a little-noticed plank in an economic stimulus bill.
That law let companies apply losses from 2008 or 2009 against taxes paid in the previous five years, instead of the previous two years.

The law in question is supposed to preclude TARP banks like JP Morgan Chase, which got $25 Billion from taxpayers it has since repaid, from using this tax break to their benefit.
However, JP Morgan Chase is using a loophole - their acquisition of Washington Mutual in 2008.

Failed Seattle thrift Washington Mutual Inc. is eligible for about $2.6 billion in tax refunds, thanks to big losses in 2008. Now J.P. Morgan, which took over WaMu's banking operations in September 2008, is in discussions with the Federal Deposit Insurance Corp. and bondholders about the refund.

To put this into perspective, JPM paid $1.9 Billion in 2008 to acquire Washington Mutual and its $327 Billion in assets. Now it will get nearly all of that money back in the form of a tax refund.

Recall that JPM was the bank that acquired Bear Stearns in 2008 for just $236 Million, or just $2 a share when Bear Stearns stock was trading at several times that moments before the takeover was announced. This only happened after the Fed extended a $30 Billion loan to JPM.

JP Morgan Chase has been on quite a roll recently. For instance, last year they were involved in a bribery scandal.

JPMorgan Chase & Co. has agreed to pay $75 million in fines and forfeit $647 million in fees to settle federal regulators' charges that it made unlawful payments to friends of public officials to win municipal bond business in Jefferson County, Ala.
The move lowers Jefferson County's bond debt to about $3.2 billion from $3.9 billion, but officials had no immediate comment on whether that was enough to help the county avoid filing what would be the largest municipal bankruptcy ever.

And remember the AIG bailout? Well, JPM got $1.2 Billion from that as well.
If you want to go back a few years, JP Morgan's shady dealings was also involved in the failure of WorldCom.

J.P. Morgan Chase & Co. said Wednesday it would pay $2 billion to settle an investor lawsuit brought after an $11 billion accounting scandal forced WorldCom Inc. to declare the largest bankruptcy in U.S. history.

JPM was also involved with a $7 Billion phantom muni bond scandal in 2006.
And, of course, JPM was directly involved in the Enron accounting scandal.
We even find JPM involved with rigging the Japanese copper market in the 90's.

Not to anyone's surprise, JP Morgan was also involved with the complex derivatives that Bernie Madoff used to steal from his investors.

It seems like JP Morgan Chase has had its dirty fingers in every underhanded, illegal scam on Wall Street over the last decade or so, and yet somehow manages to get all these wonderful, taxpayer funded deals.

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Great post and here's a Zombie Finance link

And speaking of Zombie Finance....

Not just a simple purchase

while Jamie Dimon, CEO of JP Morgan, served on board of directors for FRBNY, FRBNY creates Maiden Lane I to assist JP Morgan with purchase of Bear Stearns. Actually Dimon still serves on the board of FRBNY - Financial Information for the Rest of Us.

To be expected, RebelCapitalist ...'s about "the prevalence" -- FRBNY favors NY bankers, and, of course, Jamie Dimon is a NY banker.



It controls FRBNY. FRBNY, as you know James, holds a special position in the Fed Reserve System besides being a stones throw from Wall Street. - Financial Information for the Rest of Us.

Just my sarcastic streak

Of course I'm being facetious -- would anyone trust a man over the age of 13 years who goes by the name "Jamie"?

JP Morgan claims unemployment benefits increase unemployment

by 1.5%.

Serial! here.

I forgot how many jobs JP Morgan Chase offshore outsourced after getting TARP funds....

I know Citigroup did a $2 billion dollar deal to finish offshore outsourcing any tech job that managed to sneak by (who do you virtually move a computer into a room and plug in the cables?)

JPM offshoring

I forgot how many jobs JP Morgan Chase offshore outsourced after getting TARP funds.

I don't know the number of jobs, but I can tell you how much they spent doing it - $400 million. That much money will outsource a lot of jobs.

But they are worried about people being on unemployment. It's almost as if they think that working people are a lower class of human being.

the road to serfdom

They do look at the U.S. middle class, the American workforce as peasants and that includes professionals, PhDs, high skilled labor. Yup, they have the gall to turn the American work experience into Schindler's List and then insult people for a mere paltry sum to keep them from starving.

BofA and Wells Fargo won't be paying taxes

It isn't just JPM.

This tax season will be kind to Bank of America and Wells Fargo: It appears that neither bank will have to pay federal income taxes for 2009.
Bank of America probably won't pay federal taxes because it lost money in the U.S. for the year. Wells Fargo was profitable, but can write down its tax bill because of losses at Wachovia, which it rescued from a near collapse.

JPM in yet another scandal

Add another line to JPM's rap sheet.

(Bloomberg) -- JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case.
A government list of previously unidentified “co- conspirators” contains more than two dozen bankers at firms also including Bank of America Corp., Bear Stearns Cos., Societe Generale, two of General Electric Co.’s financial businesses and Salomon Smith Barney, the former unit of Citigroup Inc., according to documents filed in U.S. District Court in Manhattan on March 24.

JPMorgan Chase X-File Updated

Just to keep the JPM Chase corruption file updated:

From this gold site we read:

On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.

In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.

On February 3 Maguire gave two days' warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

It would not be possible to predict such a market move unless the market was manipulated.

Does anyone know of any market JPM Chase ISN'T manipulating?