Sunday, May 27, 2012

JP Morgan Chase mess: Dimon wishes if he could turn back time

Written by Biloxi

With foreclosure mess, dysfunctional financial institution, increasing lawsuits, $2 billion dollar and counting trading loss, and a damaged image, JP Morgan Chase CEO Jamie Dimon would want to wish that cocky and arrogant words that he said in the media has come back to bite him.

For example, Dimon said this on CNBC  last year about the struggling homeowners:

"Giving debt relief to people that really need it, that's what foreclosure is."


"[Homeowners] are probably better off going somewhere else, because they get relieved almost 100% of the debt through foreclosure."

Ouch! And to add insult to injury, here is a former JP Morgan employee, who identified only as "Jared," explained his job to Mandelman Matters, which wrote:

Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”

“Foreclosures are a no lose proposition for servicers... The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”

“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway."

Now Dimon would have thought that Volcker rule that he has criticized and lobbied against would be most talked need in this country under the Dodd-Frank bill thanks to Dimon's demise in the $2 billion dollar London Whale trading loss.  And did Dimon say about the $2 billion loss which now the losses are climbing and lawsuits are mounting: "flawed, complex, poorly reviewed, poorly executed, and poorly monitored." Unfortunately, famous leaders in the past gave us far warning about the banks, their words are coming true:

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." --Thomas Jefferson

Indeed the large banking insitutions have become more dangerous enough that they own the US Congress, US Senate, and the government.

"Whoever controls the volume of money in any country is absolute master of all industry and commerce.” - President James A. Garfield, assassinated 1881

And currently, Bank of America, JP Morgan Chase, Goldman Sachs, Citigroup, and Wells Fargo own 56% of the US economy.

“The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present which put nations and peoples under the control of the few. If the American people knew the corruption in our money system there would revolution before morning!” ? Henry Ford, Sr (1863-1947)

And the American people have awoken from the corruption in the money system. The question what will be the outcome of this country?

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