JP Morgan Execs MUST BE JAILED, No Deals

[marmar]

from the Working Life blog:



JP Morgan Execs MUST BE JAILED, No Deals
Posted on 02 October 2012.


It is great that JP Morgan Chase has been sued–and congrats to NY Attorney General Eric Schneiderman. But, we’ve seen this picture before: suits are filed and the executives who committed fraud or financial crimes or misconduct are NEVER–NEVER–held accountable. If we want real change–not phony, uplifting change–these people must go to jail. NO DEALS.

Here is the upshot of the news:

The federal mortgage task force that was formed in January by the Justice Department filed its first complaint against a big bank on Monday, citing a broad pattern of misconduct in the packaging and sale of mortgage securities during the housing boom.The civil suit against Bear Stearns & Company, now a unit of JPMorgan Chase, was brought in New York State Supreme Court by Eric T. Schneiderman, the attorney general who is also a co-chairman of the task force, known as the Residential Mortgage-Backed Securities Working Group.

The problem is that this is not the news. The news is that bank executives still have their jobs and are still making huge pay AFTER they engaged, directly or through their subordinates, in illegal, criminal and improper misconduct.

Bank of America executives–who were central to deceiving investors–got a stay-out-of-jail card to the tune of a $2 billion settlement. ...................(more)

The complete piece is at: http://www.workinglife.org/2012/10/02/jp-morgan-execs-must-be-jailed-no-deals/

[xchrom]

1. and their wealth confiscated. nt

[tridim]

2. And repayed to the victims they stole it from.

[99Forever]

3. I hold no false hopes that...

... any of these fucking crooks will EVER face real justice. It's pretty damn clear by now that they own the entire system and everyone in a position to do the right thing.

So, when the Revolution comes, no one can pretend it couldn't have been thwarted.

[alc]

4. we have too many laws and regulations - hard to prove violation

We need laws more like

"If a jury decides YOUR COMPANY did something_like_this, YOU go to jail"

I'm responsible for for part of our SOX compliance. Look at this section http://www.soxlaw.com/s302.htm

Sounds good. "signing officers" are responsible. We have quite a few people (and vendors) putting regular effort into creating SOX reports. Those officers have LOTS of reports to base their to signature on. What if I screw up and the reports are good but our controls don't match the report? The reports have input from literally 100s of people. Signers do not micromanage all of us and cannot review everything to the point where they recognize errors in reports.

I hope it's safe to say that some errors should NOT result in 20 years in prison (http://www.soxlaw.com/s802.htm) But, if an officers wants to violate SOX, there is enough process and regulation and reporting to provide plausible deniability if they do things right. Look at what is needed to prove to give the sentence (e.g. falsifying docs with intent).

Proving if a violation was an error by a low-level employee or an intentional violation of SOX can be very hard. Especially since anyone intentionally violating the law is probably also intentionally covering up anything that would implicate them.

[Nye Bevan]

5. Fully agree.

Provided that there is evidence beyond a reasonable doubt to show that they are guilty of felonies that carry prison time.

[just1voice]

6. Perfect quote from link "Until these guys sit in jail, nothing will change."

That quote applies to all corruption.