{"id":19971,"date":"2016-04-15T12:42:59","date_gmt":"2016-04-15T17:42:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19971"},"modified":"2016-04-15T12:43:27","modified_gmt":"2016-04-15T17:43:27","slug":"the-fed-sends-a-frightening-letter-to-jpmorgan-and-corporate-media-yawns","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19971","title":{"rendered":"The Fed Sends a Frightening Letter to JPMorgan and Corporate Media Yawns"},"content":{"rendered":"

The Fed Sends a Frightening Letter to JPMorgan and Corporate Media Yawns<\/a><\/h3>\n
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\"Jamie<\/a><\/p>\n

Jamie Dimon, Testifying Before the Senate Banking Committee on June 13, 2012 Over Massive Derivative Losses at the Depository Bank of JPMorgan Chase<\/p>\n<\/div>\n

Yesterday the Federal Reserve released a 19-page letter that it and the FDIC had issued to Jamie Dimon, the Chairman and CEO of JPMorgan Chase, on April 12 as a result of its failure to present a credible plan for winding itself down if the bank failed.\u00a0The letter\u00a0<\/a>carried frightening passages and large blocks of redacted material in critical areas, instilling in any careful reader a sense of panic about the U.S. financial system.<\/p>\n

A rational observer of Wall Street\u2019s serial hubris might have expected some key segments of this letter to make it into the business press. A mere eight years ago the United States experienced a complete meltdown of its financial system, leading to the worst economic collapse since the Great Depression. President Obama and regulators have been assuring us over these intervening eight years that things are under control as a result of the Dodd-Frank financial reform legislation. But according to the letter the Fed and FDIC issued on April 12 to JPMorgan Chase, the country\u2019s largest bank with over $2 trillion in assets and $51 trillion in notional amounts of derivatives, things are decidedly\u00a0not<\/em>\u00a0under control.<\/p>\n

At the top of page 11, the Federal regulators reveal that they have \u201cidentified a deficiency\u201d in JPMorgan\u2019s wind-down plan which if not properly addressed could \u201cpose serious adverse effects to the financial stability of the United States.\u201d Why didn\u2019t JPMorgan\u2019s Board of Directors or its legions of lawyers catch this?<\/p>\n

It\u2019s important to parse the phrasing of that sentence. The Federal regulators didn\u2019t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to \u201cthe financial stability of the United States.\u201d<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Fed Sends a Frightening Letter to JPMorgan and Corporate Media Yawns Jamie Dimon, Testifying Before the Senate Banking Committee on June 13, 2012 Over Massive Derivative Losses at the Depository Bank of JPMorgan Chase Yesterday the Federal Reserve released a 19-page letter that it and the FDIC had issued to Jamie Dimon, the Chairman […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[169,1845,3453,303,4714,2267,13494,13495,827,3650,860],"class_list":["post-19971","post","type-post","status-publish","format-standard","hentry","category-economics","tag-corporate-media","tag-dodd-frank","tag-fdic","tag-fed","tag-jamie-dimon","tag-jp-morgan","tag-pam-martens","tag-russ-martens","tag-united-states","tag-us-federal-reserve","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19971"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19971\/revisions"}],"predecessor-version":[{"id":19973,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19971\/revisions\/19973"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}