The latest in a string of unethical and immoral behavior from one of the world?s largest financial institutions should come as no shock in itself. Sadly, they are getting away with only having to pay a drop in the bucket.
The securities business unit within JPMorgan Chase & Co. has paid $228 million to settle charges against it for committing civil fraud.
According to the Securities and Exchange Commission (SEC), J.P. Morgan Securities LLC made secret deals with companies that allowed them to get a glimpse of what other competitors were offering cities and counties for their business thus rigging dozens of bids. Municipalities would use the money earned on interest to fund various projects.
The Justice Department has been granted JP Morgan Chase & Co.?s full cooperation during their further investigations into this matter. Bank of America and UBS have also agreed to settlements regarding similar matters.
This settlement covers charges brought by the SEC, the Internal Revenue Service, bank regulators and 25 state attorney generals.
There is no doubt that the employees of J.P. Morgan Securities LLC made a great deal of money for themselves and the company, not to mention in the usual bonuses that JPMorgan has been known to shower its employees with.
JPMorgan has publicly blamed the unethical behaviors on employees who are no longer employed by the company.
A rep for JPMorgan has confirmed that the employees have been fired, however, there was no termination date given. Additionally when asked if there would be further penalties pursued against those employees no answer was given.
All of us can be rest assured that much like the bonuses that were given out during their ?intelligent? decision to dabble in the derivatives game, the company will not ask for the money back from these employees. It is also likely that those same individuals will rise to power in some form or another in another arena of the financial services industry and with another company. Also like this and previous times, we will be duped out of tax dollars that we will never see again.
Add some more insult to injury, they?ll have no jail time.