Posts Tagged ‘JP Morgan Chase’

Quick Hit: “Dimon or Rust?”

Dimon’s JP Morgan announces $2 billion in trading losses!

An outspoken opponent of the Volcker Rule and other banking and financial regulations, Jaime Dimon, CEO of the nation’s biggest bank, discloses the huge losses and proves the need for more comprehensive banking oversight.

Touted as the brilliant banking executive who avoided the ravages of the financial crisis, has Dimon now become the poster boy for stronger regulation?

The scandalous nature of this trading loss, which may grow to over $4 billion, has undeniably tarnished Dimon’s star.

But this isn’t the first scandal at JP Morgan!

Read the rest of this entry »

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Posted in Banking, Finance, Quick Hits, Too Big to Bail | Comments Off

“A Path to Poverty!”

Paul Ryan’s budget plan will put America on a fast path to poverty.

Poverty in America is rising! And it’s getting uglier.

The country is dying: infrastructure decaying, housing decimated, politics corrupt, media biased, the rich greedy and dispassionate, wars suffocating—and that’s on a good day.

Though an eternal optimist it becomes increasingly difficult to find many positives in the current environment.

Especially when we learn that by the end of 2009, 43.6 million people were living in poverty which raises the level to 14.3% of our population. That number surely increased in 2010 while Jaime Dimon, Lloyd Blankfein, and their colleague’s pay increased by several millions.

How many houses do they need? How many cars?

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Posted in Budget, Economy, Politics, Romney2012 | 1 Comment »

“Small Banks Reel, While Big Banks Steal”

Congress battles over financial reform while four more banks fail!

Congress, in its infinite wisdom, is allowing Big Banks to steal from ‘the people’ while regional and community banks fail at an accelerated rate.

Four more banks were closed by the FDIC last Friday bringing the total lost in the first two weeks of May to 8 and the 2010 total has increased to 72 bank failures.

As bank foreclosures edge closer to costing the taxpayers huge amounts of money, Senators like Judd Gregg, Mark Warner, and Bob Corker help ‘Too Big to Fail’ institutions slide their hands into customer’s pockets to steal their hard-earned cash.

The Big Banks, JP Morgan Chase, Bank of America, Citigroup, and several others borrow money from the Fed at 0%, buy America’s debt from The Treasury earning the spread in interest rates, making easy money at the expense of taxpayers. In return they give their customers very little interest on their savings and charge them outrageous fees after creating bogus, thieving rules designed only to extract money from their customers.

In other times in our history these actions were unethical and even criminal.

Yet our Congressional representatives are reluctant to pass laws to keep the banksters out of our pockets.

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Posted in Banking, Economy, Too Big to Bail | Comments Off

“Senate Votes for Big Banks and Against the People!”

The People vs. Big Banks! Who won the vote in the Senate last week?

Last Thursday night the Senate voted on an important amendment for ‘the people’ of this country—protecting the American people from predatory banks. The amendment (Brown (OH) amdt. No. 3733) to Restoring American Financial Stability Act of 2010, would impose leverage and liability limits on bank holding companies and financial companies. Essentially a controlled method of separating the banks and protecting depositors and investors—‘the people.’

There are many reasons to break up the Big Banks and those are discussed in greater detail in “Break ’em Up!” But mostly it’s because of what the banks continue to do to middle-class Americans with impunity.

Surely the Senate voted in favor of their constituents?

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Posted in Banking, Politics, Too Big to Bail | 2 Comments »

“Break ‘em Up!”

There are many reasons why we need to break up the behemoths of finance!

The taxpayers saved their affluent asses. The Big Banks, along with their highly compensated executives, were headed over the cliff with nothing to stop their fall, and we bailed them out!

Break ’em Up!

Congress, in a panic, saw fit to give taxpayer dollars to the self-destructive creators of the financial crisis to prevent a catastrophic meltdown of the U.S. economy, without even asking us.

We’re told over and over that TARP was successful, that Congress’ decisive actions saved the economy and that we should be eternally grateful. We’re reminded that the Big Banks are again stable. They’re back to making billions of dollars—and the economy is improving.

For whom?

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Posted in Banking, Economy, Too Big to Bail | Comments Off

“Bank Closings Accelerate in March”

Bank Failures since 2008

Three Years of Bank Failure

Since the start of 2010 through the first 3 weeks of March, thirty-seven (37) banks have succumbed to the depressionesque economy which began for banks in 2008.

On March 19th the FDIC (Federal Deposit Insurance Corporation) took over 7 banks, the largest single week total this year (6 were closed on January 29th).

FDIC Chairperson, Sheila Bair, in an interview last week stressed that despite the improvement in Big Banks, 2010 was going to be a rough year for many other banks.The FDIC deserves high marks for their efficiency in handling the bank failures and maintaining a stable environment.

They also get high marks for sensitivity in their decision to seize LibertyPointe Bank on Thursday, March 11th instead of Friday. Most of LibertyPointe’s employees and customers are Orthodox Jews and the FDIC wanted to avoid closing the bank during the Jewish Sabbath which began at sundown on Friday.

In the other Manhattan seizure, Charles Antonucci, CEO of Park Avenue Bank, was arrested and charged with fraud and lying on an application to receive TARP funds. He is the first executive to be charged with a crime related to the Troubled Asset Relief Program.

What more can we expect of banks for the rest of 2010? Read the rest of this entry »

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Posted in FDIC Foreclosures | 1 Comment »

“An Economic View Into a New Decade”

The financial decade has ended and all evidence points to 10 years of nothing. That’s right, the stock market was actually down during the last decade!

A new decade has begun and with it comes high hopes for a much better decade than the last. At least for the market. The big question is, what will the next decade bring and what will the best bets be for investors?

As we entered 2000, a new millennium, we had what appeared to be a thriving economy. Jobs were plentiful, tech was booming, the country had a budget surplus, and a deficit of only $5 trillion.

A decade later we have unemployment at 10%, tech has leveled off and has moved to selling toys and gadgets, and the deficit climbed to $12 trillion. Banks are failing at an accelerating rate and big banks, those ‘Too Big to Fail’ after being pulled from the abyss with taxpayer money, are cheating the economy at a greater level than at any time since the 1920’s.

A lost decade? The worst in our nation’s history!

Are the prospects for a more prosperous decade any better than they were at the beginning of 2000?

Have conditions really improved? Read the rest of this entry »

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Posted in Economy, Predictions | 2 Comments »

Quick Hit: “Bad Omen for Banks!”

For the banking industry, January, 2010 ends badly!

While the Huge Banks: JP Morgan Chase, Goldman Sachs, Bank of America, Citi Bank, Wells Fargo, and Morgan Stanley pay out billions of dollars in bonuses, the FDIC is forced to close down 6 more banks.

While the Huge Banks who caused the financial meltdown continue to gamble with its depositors money—reaping some big risky rewards—the FDIC seizes its 15th bank of this young decade—barely the beginning of a new year.

Last year, 2009, we lost just 6 banks in January at a cost to the Federal Deposit Insurance Fund of approximately $810 million. The 6 seized today could easily cost the Fund over a billion dollars adding significantly to the already $1.37 billion the first 9 foreclosures of this year has cost the FDIC.

The crisis that is still building is mimicking the loss pattern of the Savings & Loan Crisis that lasted 8 years and saw 1,600 S&L’s and banks fail.

Considering what happened in the 90’s, this bad start could be the precursor of another lost decade; something everyone should brace for!

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Posted in FDIC Foreclosures, Quick Hits | 1 Comment »

“UnAmerican Activities; The Banks Who Stole Christmas”

No Toto, we’re not in Whoville anymore!

Together these classic films, “The Wizard of Oz” and “The Grinch Who Stole Christmas,” one in magnificent color, written by L. Frank Baum, and the other an incredible story by the irrecusable Dr. Seuss, definitively describe what banks have done to the economy, the middle-class, the country, and—oh yes, Christmas.

The “UnAmerican Activities” of American banks have stolen Christmas, and Christmas cheer, from millions of Americans—and even more millions of children. They are, at the same time, the Wizard of Oz and the Grinch.

As the Wizard of Oz banks fooled unsuspecting and naive consumers into believing the American Dream was tied up in a 6.9% interest rate. Banks enticed everyone down the Yellow Brick Road, in search of the Emerald City.

But the road, like in the movie, wasn’t paved with gold. And there is no Emerald City to behold.

Bankers deceived hard-working Americans, convincing them the way to prosperity was cheap credit and burdensome debt. They tricked customers into massive obligation through subprime mortgages and credit cards with limits well beyond the cardholder’s means. And then the curtain was pulled back and revealed their deception.

Bad gambles, made with the play money they issued to all the ungrateful fools, began to unravel. The economy began to slide, and with it the banks’ profits disappeared.

With the falling economy their affable clients began to default and the bankers could see their ginormous bonuses fading. Years of fake prosperity were gone. The Wizard had been exposed, and banks found themselves in a dubious pinch.

That’s when they turned, into the petulant Grinch. Read the rest of this entry »

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Posted in Banking, Economy, Too Big to Bail, UnAmerican | Comments Off