Skip to main content

For the price of a measly $20 billion, the government left JP Morgan Chase walk away from the responsibility of helping fuel the wreckage that became the global financial crisis--and, to boot, it paved the way, incomprehensibly, for Jamie Dimon to get a big fat pay raise(long live the American free market!!!). Now, an important suit by Better Markets has been filed to potentially undo the deal, or, at least, force a more honest, open discussion about what the government's cheap stay-out-of-jail, sock-it-to-the-customers actually says.

Not everyone was buying the P.R. gimmicks Dimon was throwing out at the gullible press and political world about what a great job he did that warranted the cheap deal and his subsequent pay raise. Better Markets correctly, and, in my view, courageously, referred to the bank as a "One Bank Crime Spree". Now, Better Markets has filed a lawsuit challenging the deal and the critical point is here:

And yet, according to a lawsuit that a nonprofit group filed against the Justice Department on Monday, the crucial details of the deal were for the government’s eyes only.[emphasis added]
In other words, the Administration is hiding details from the public--the very public which has had to bear the cost of the behavior of JP Morgan, Dimon and the rest of the pirates on Wall Street, whether those costs were lost jobs, obliterated savings and, now, the cost of the settlement which will be passed on to consumers.


The Justice Department, the lawsuit notes, “did not disclose the identity of a single JPMorgan Chase executive, officer or employee, no matter how involved in or responsible for the illegal conduct.”

Better Markets also highlighted some ambiguity about the breadth of the wrongdoing covered in the deal. One government document stated that the investigation spanned from 2005 and 2008, while another document refers to activity from 2005 to 2007.

“This contract was the product of negotiations conducted entirely in secret behind closed doors,” the lawsuit said. “No one other than those involved in those secret negotiations has any idea what JPMorgan Chase really did or got for its $13 billion because there was no judicial review or proceeding at all regarding this historic and unprecedented settlement.”

Better Markets had warned last year that any deal with JP Morgan had to be transparent, writing to Attorney General Eric Holder that a full accounting of any deal would allow the people to “…decide for themselves if the settlement is just another sweetheart deal for Wall Street or in fact an appropriate punishment for unprecedented and massive illegal and criminal conduct.” In the letter, Kelleher listed a whole series of documents and disclosures that Holder should release as part of any settlement.

Essentially, this suit tries to expose what virtually no Democrat wants to talk about: enforcement is a joke, and the criminals have been let off the hook. Elizabeth Warren has pointed out, "I think this raises questions about whether our enforcement strategy is working or whether it's actually so bad that we're making it more likely for big banks to break the law."

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Meteor Blades, jbou, bink, Thumb, Duckman GR, Alumbrados, cslewis, Mimikatz, Sylv, Alfred E Newman, PrahaPartizan, Mogolori, Chi, copymark, Jackson L Haveck, glitterscale, Liberal Thinking, dfarrah, Gooserock, theboz, wu ming, Heimyankel, Pescadero Bill, cotterperson, genethefiend, OLinda, eeff, RFK Lives, exNYinTX, hubcap, Creosote, astro, TheMomCat, Babsnc, TracieLynn, magnetics, whenwego, boadicea, phillies, Nate Roberts, ctsteve, antirove, k9disc, kharma, psnyder, emmasnacker, pat bunny, cosette, Chirons apprentice, Calidrissp, inclusiveheart, dkmich, Deward Hastings, solesse413, rmx2630, Gowrie Gal, Brecht, nailbender, Bluesee, marina, radarlady, 3goldens, tle, Ckntfld, ichibon, ek hornbeck, irate, sc kitty, corvo, Flint, run around, Simplify, truong son traveler, eightlivesleft, dewtx, stagemom, YucatanMan, reflectionsv37, fixxit, eru, Sun Tzu, GreyHawk, Kayakbiker, lotlizard, Eric K, Ozymandius, Sandino, kaliope, Rusty in PA, bunsk, Brian B, daddybunny, Lindy, peacestpete, Indiana Bob, CJnyc, Jim P, berko, Medium Head Boy, cybersaur, dharmafarmer, AoT, KenBee, arlene, sailmaker, Lefty Coaster, blueoasis, NBBooks, triv33, praenomen, MJ via Chicago, jguzman17, aloevera, StrayCat, philipmerrill, gooderservice, PapaChach, JVolvo, onionjim, thenekkidtruth, profh, doingbusinessas, Clive all hat no horse Rodeo, Lovo, kurt, Tom Anderson, kurious, Johnathan Ivan, Little, tegrat, One Pissed Off Liberal, Sapere aude, hooper, Cronesense, hawaii2, SpecialKinFlag, devis1, ColoTim, psychodrew, Wino, LillithMc, Cofcos, daveygodigaditch, terabytes, suejazz, aliasalias, bobswern, janatallow, eyesoars, Empower Ink, JDWolverton, Ezekiel in Exile, misterwade, angry hopeful liberal, wayoutinthestix, poligirl, Aureas2, Involuntary Exile, dadadata, elwior, Lujane, rssrai, hwmnbn, No Exit, temptxan, wavpeac, codairem, petulans, shortgirl, GustavMahler, maggiejean, Bule Betawi, Turn Left, cybrestrike, greengemini, nchristine, The Dead Man, bsmechanic, MKSinSA, his panic, Keith Pickering, histOries Marko, ArthurPoet, ruscle, Renie57, Orlaine, sunny skies, cordgrass, albrt, Betty Pinson, DrTerwilliker, slice, Colorado is the Shiznit, ozsea1, Jazzenterprises, La Gitane, FarWestGirl, Situational Lefty, marleycat, Jasonhouse, muddy boots, RfrancisR, merrily1000, enhydra lutris, PhilJD, Marihilda, blue muon, stlsophos, Willa Rogers, dradams, DRo, caryltoo, Auriandra, No one gets out alive, Laurel in CA, Rejoinder, OldDragon, DeadHead, greenbastard, IndieGuy, orestes1963, 420 forever, Mr Robert, Mike RinRI, TBug, radical simplicity, New Minas, AZ Sphinx Moth, CalBearMom, WheninRome, madcitysailor, mzkryz, Ray Pensador, jbob, SixSixSix, unfangus, northerntier, Mannie, Hey338Too, oslyn7, Kombema, SamLoomis, nancyjones, Liberty Equality Fraternity and Trees, occupystephanie, Pablo Bocanegra, P E Outlier, Meurglys

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site