Wall Street’s Felon Banks to Go Live with their Own Stock Exchange this Month
Wall Street’s Felon Banks to Go Live with their Own Stock Exchange this Month By Pam Martens and Russ Martens for Wall Street on Parade
Criminal histories are, apparently, no barrier to running a stock exchange in the United States to the deeply conflicted way of thinking of the Securities and Exchange Commission (SEC), which issued its approval to operate the exchange on May 5.
Investors in the new stock exchange are some of the most serially-charged Wall Street banks, including JPMorgan, Goldman Sachs, and UBS, along with the hedge fund, Citadel Securities. BlackRock, which is up to its neck in the Federal Reserve’s deeply conflicted bailout programs, is also an investor, as is the high-frequency trading firm, Virtu Financial, and others.
JPMorgan Chase has been criminally investigated by the U.S. Department of Justice at least four times in the past seven years. A criminal probe in 2013 looked at how the bank had used bank depositors’ savings to gamble in exotic derivatives in London, eventually losing $6.2 billion. That case was known as the London Whale and ended in the bank paying $900 million in fines. No criminal charges were brought against the bank.
In 2014, JPMorgan Chase was charged with two criminal felony counts for how it mishandled the business account of Ponzi mastermind, Bernie Madoff. JPMorgan’s compliance staff looked the other way at screaming red flags of money laundering in the Madoff account for decades. Bank employees told authorities in the U.K. that it thought Madoff might be running a Ponzi scheme. It filed no such concerns with U.S. regulators. The bank pleaded guilty to both felony counts.