Photo credit: @julesdwit.
A not-for-profit media organization supported by people like you.
J.P. Morgan Chase has reached a settlement of $13 billion stemming from the financial crash, with $4 billion going to homeowners. What comes next? Ask Felix Salmon, finance blogger at Reuters.
@ jgarbuz from Queens
Why don't you just sit in the corner with a funny hat? You wrote:
"Money is just a medium of exchange ...If you keep it under the mattress it will decline in value quite quickly."
Really, so when money loses or gains value (i.e. vis a vis China's undervalued currency) it's not a result of central bank policy but instead a function of time? It just degrades and dies like an organism? Wow. You sure are edumacated clubbie. You must be on the government tick because you've obviously never handled your own money or know anything about what drives currency valuations. But thanks to the Fed and their "owners" the dollar has lost almost half its value against other major currencies since the mid 1980's, it started right about the time Greenspan took over....
@ jgarbuz from Queens
LOL, you wrote:
"Naturally, bankers had to be closely involved because they are the ones who understood it."
Maybe it's tough for you to understand but the concept of private money creation is not difficult to express. It doesn't matter what anything costs or who owns it because the bankers can always print enough money to buy it.
The Fed was not created to "regulate" the financial system, it was created to finance wars and own things, most notably the American taxpayer (the income tax was created at almost the same time). The owners of the Fed are a closely kept secret but it is known that they earn 6% interests and the shares are certainly held in part by the Rothschild family to this day. It's not as asset you divest, ever.
So who is getting helped?
Money is just a medium of exchange, and the only way you can make it increase in value is to invest it in something you hope will increase in price, such as gold, a house, or a business, a painting etc. If you keep it under the mattress it will decline in value quite quickly.
Well the shareholders are to blame by letting these thieves stay in office!!! I own stocks and when it comes time to vote on the BoDs and CEOs and benefits for these sleaze bags I see the majority of shareholders vote for them to stay and give them increases!! So shareholders are to blame as much as the Boards who stay on forever and ever and ever. They vote with the boards who support the sleaze. It's the workers who get screwed most because as you on a recent show yourself showed salaries have declined over the past 2 or 3 decades without any push back.
How about we put the 9 billion into balancing the federal budget and financing some of the social net programs that many Americans directly affected by the crash are relying on today.
The caller was talking about how the government allows banks to counterfeit unlimited money, that then get's stuck there. The government should be letting the 99% get that money somehow, and the banks will end up with it in the end anyway, while having enriched hundreds of millions of lives. The government could do anything, free college, healthcare, everything. free land, homesteading, gardening of everywhere, interstellar space travel...
And JP Morgan, after this slap on their wrist, will laugh all the way bak to the, well, back to themselves. For JP Morgan, $13 B is a pittance -- hardly a disincentive for the future, and simply the cost of doing business... This is all symbolic, and OBVIOUSLY little will actually come back to help anyone who actually was hurt... In today's America, crime pays and pays very well, if you are wealthy enough to be a bank that's too large to fail, and/or if you can buy your way out of any situation...
Note how one of your callers, with a suspiciously "Palestinian" accent informed us that "the Rotschilds" are the true culprits of the crisis. Pathatic. Actually, it was Morgan (obviously not a Rotschild) who saved the day during the 1907 financial crisis, and the Fed was created in 1913 basically to regulate the financial system. Naturally, bankers had to be closely involved because they are the ones who understood it.
What a stupid segment. Why not just say the OBVIOUS FACT. What is the point of a fine levied against oneself! IF JPMORGAN is backed by the US TAXPAYER then who is really being fined here? WTF!
I bank with Chase, though I tried to avoid it for so many years. They just kept buying out all the banks in which I did have my accounts.
Then they do something I consider to be illegal, immoral and unethical and have to give away $13 billion dollars and we account holders get .01% interest on our accounts. Absolutely disgusting.
I can't even hope for them to fail, because I have my money there and it is easy to get to, but it just makes me so angry that all these banks, which we depositors support with our deposits, pay huge sums to their CEOs and COOs and CFOs and pay their employees minimum wage and their depositors no interest worth a damn.
I'm reading Upton Sinclair's The Jungle and this fiasco reminds me of turn of the 19th-20th century Chicago antics.
And the worst of it is that the payment of so many billions of dollars - which should be the interest of the depositors - is just money and won't stop them from trying their next finagle. They don't equate the punishment with better behavior, just with loss of money.
Not one dime of that money, $4 billion or not, well ever find its way to "troubled homeowners". This is just a bunch of criminals crowing about lifting the wallet of a different bunch of criminals.
Please have Felix Salmon on more often. He explains complicated topics very well & has that certain Felix point of view on things.
I guarantee that very little, if any, of this money will ever find its way back to the guy on the street, because this is just US Government taking back, at gunpoint from JP Morgan, the money that it feels it rightfully theirs, like any criminal operation. This is just one criminal operation strongarming another one. The financially decimated public will never ever benefit from this.
JPM out 13 BILLION (about 1/2 yearly revenue) and stock down 1/10 of 1%. Clearly the market understands that a fine, even of this magnitude, has no affect on business as usual in a too big too fail bank backed by the American taxpayer. SCORE ANOTHER WIN FOR THE BANKSTERS!
Such nonsense. What is the point of this settlement? A bank that is too big to fail gets fined by the government at which point they go to the Fed for free $ and adjust their balance sheet accordingly. What exactly is accomplished? This is no different than suing a no count kid you're supporting:
Gubment: "Son, I won, you owe me $5000.00 in damages for totaling my Volvo.
JPMORGAN Jr.: Yeah, whatever dad, take it out of my allowance...
Gubment: I will. I hope you've learned your lesson.
Enough of this grandstanding and misdirection. We want some scalps, some human beings doing hard time. That is all.
Email addresses are required but never displayed.
Brian Lehrer leads the conversation about what matters most now in local and national politics, our own communities and our lives.
Subscribe on iTunes
Brian Lehrer Weekend: The Nation Magazine, Des Bishop & Eva Moskowitz
WNYC 93.9 FM and AM 820 are New York's flagship public radio
stations, broadcasting the finest programs from NPR, PRI and American Public Media, as well as a wide range of award-winning local
programming. WNYC is a division of
New York Public Radio.