JP Morgan Chase
In 1996, the world learned a Japanese firm had cornered the copper market. The company, Sumitomo, was fined $125 million for squeezing copper supplies and artificially inflating prices--at that point the largest penalty ever levied by a U.S. government agency. The Commodities Futures Trading Commission called the scheme “one of the most serious worldwide manipulations” of a commodity in decades. Last Monday, the Securities and Exchange Commission posted a decision that could effectively lead to a repeat of the Sumitomo corner, with one key difference: hoarding copper will now be legal.
When JP Morgan announced its $2 billion trading loss a few weeks back, a handful of smart conservatives saw an opportunity for Romney to get to Obama’s left: Call for an end to too-big-to-fail. As AEI’s James Pethokoukis put it: In one fell swoop, Romney would undercut the charge that he’s a creature of Wall Street and the financial superelite. And given how many hedge fund managers and other investment pros dislike the mega-banks, Romney probably wouldn’t even take a fundraising hit.
When President Obama announced that Bill Daley would no longer serve as White House chief of staff, he pronounced himself chagrined by the move but explained that Daley had an understandable desire to return to Chicago. “In the end,” the president told reporters in the State Dining Room, “the pull of the hometown we both love—a city that’s been synonymous with the Daley family for generations—was too great.” As a face-saving gesture this may have been understandable, but as an explanation for Daley’s departure it strains credulity.
Earlier today I wondered what Ron Suskind's forthcoming book, Confidence Men: Wall Street, Washington, and the Education of a President, would have to say about White House chief of staff (and scapegoat du jour) Bill Daley. One thing it says, I have since learned, is that in September 2008, as polls were starting to show that Obama was the likely winner, a meeting was called with three former Clinton chiefs of staff: John Podesta (who would later be Obama's transition chief), Leon Panetta (now defense secretary) and Erskine Bowles (later co-chairman, with former Sen.
Somebody has created a machine that reads James Carville's most pleasant dreams and turns them into reality: One of the nation's biggest banks — JP Morgan Chase — admits it has overcharged several thousand military families for their mortgages, including families of troops fighting in Afghanistan. The bank also tells NBC News that it improperly foreclosed on more than a dozen military families. The admissions are an outgrowth of a lawsuit filed by Marine Capt. Jonathan Rowles. Rowles is the backseat pilot of an F/A 18 Delta fighter jet and has served the nation as a Marine for five years.
There were many factors that led us to the financial crisis of 2008—dangerous derivatives, irresponsible ratings agencies, negligent regulators—but one was more important than the rest. We now know it as the “too big to fail” problem. What brought the economy to the edge of disaster wasn’t only that financial institutions had made rash bets on lousy investments, but that those institutions were so massive that when their bets went bad, they threatened to take the rest of the economy down with them.
If President Obama appoints Elizabeth Warren to run the Bureau of Consumer Financial Protection, at least some parts of the financial industry are likely to fight her nomination. But which ones? One way to answer that question is to go through the 2005 book, All Your Worth, she co-wrote with her daughter. It’s a financial advice book, but it also singles out three groups for particular scorn. And it’s not hard to imagine those groups would be among those most opposed to her nomination. Here they are: 1. Credit Card Companies: Warren advised her readers to stay away from credit cards.