It is too bad that so many people have aided and abetted the mass fraud and flagrant abuse of trust that the financial sector has perpetrated on the world over the past 15 years. Greed in the final throes of a self-serving frenzy is always eventually fatal. Unfortunately for many, death can take a long time. And so far, the elites most in charge have benefited a lot, while the masses bear long-lasting scars and debt obligations which will suck away funding from all other parts of a civil society for many years to come.
Yesterday as Fed-addicted capital markets began to weaken on no new QE news, JP Morgan head, Jamie Dimon, rode to the rescue, with a strategic and preemptive leak of the Fed’s most recent stress test results and the real money shot: JP Morgan would be allowed to increase its dividend and buy back its shares. The equity market (or at least the 3 robots trading) roared in approval. Sadly for those interested in truth and honest risk assessment, there was no promise from Dimon or any of the other bank wizards, to add back fair accounting and transparency to their financial disclosure. Marking their balance sheet to market is nowhere near fruition in this farcical game we call “investing” today. Nor is their a promise that the banks will not hold the nation hostage for more tax-payer bailouts in the inevitable next leg of financial crisis ahead.
Meanwhile more bank insiders are confirming our worst allegations about the morally and legally bankrupt world of financial services. This article from Rolling Stone’s Matt Taibbi highlights another tranche of the tyrannical tale of JP Morgan et al, see:
JP Morgan Chase’s Ugly Family Secrets Revealed.
And then we have the well-worth-reading “Why I am leaving Goldman Sachs” memoir in the NY Times this morning by departing career Goldman executive Greg Smith as he apparently takes his money and runs, disgusted, but doubtless well compensated for his time.