by Pam Martens and Russ Martens, Wall St On Parade:
Jamie Dimon is the Chairman and CEO of the largest federally-insured, taxpayer-backstopped bank in the United States, JPMorgan Chase. Through much of Dimon’s tenure, JPMorgan Chase has also been designated as the riskiest bank in the United States by its regulators. And despite its unprecedented criminal history, the U.S. Department of Justice keeps handing the bank deferred-prosecution agreements or non-prosecution agreements with the casualness of a carnival barker tossing out penny candy.
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Dimon’s Board of Directors is too compromised itself to reform the bank and fire Dimon. (See here, here and here.)
So all that remains as a potential restraint on this criminally-inclined banking behemoth is the bank’s federal regulators.
On July 27 of last year, the Federal Reserve, FDIC and Office of the Comptroller of the Currency (OCC) – JPMorgan Chase’s bank regulators — released a proposal to require higher capital levels at banks with $100 billion or more in assets – those banks that demonstrated quite clearly in the spring of last year that they could spread systemic contagion throughout the U.S. banking system. Community banks will not be impacted at all by the new proposals according to the regulators.
The three federal bank regulators provided a very generous public comment period of 120 days on the proposal. The large banks had to only begin transitioning to the new rules on July 1, 2025, with full compliance not due for an absurd five years – on July 1, 2028.
On September 12, the banking cartel made its anger and intention to push back known in a 7-page letter that assaulted the proposal from every conceivable angle. The cartel demanded that the three federal agencies turn over all “evidence and analyses the agencies relied on” in making the proposal.
One of the signatories to the letter was the Bank Policy Institute (BPI), whose Board of Directors consists of the CEOs of the biggest banks. BPI is Chaired by none other than Jamie Dimon.
BPI next launched an ad campaign that grossly distorted what the increase in capital would do, claiming that it would harm working families. (These are the same mega banks that blew up the U.S. economy in 2008, put millions of Americans out of work, left millions of working families in foreclosure and got a secret $29 trillion bailout from the Federal Reserve to resuscitate their sinking carcasses.)
This past week, various news outlets including Bloomberg News (which frequently functions as an advance man for Dimon) reported that the Bank Policy Institute had hired Eugene Scalia, a law partner at Big Law firm Gibson, Dunn, to weigh options for potentially suing the Federal Reserve and the other bank regulators over the proposed higher capital rules.
Pulling a well-worn tactic from his bag of magic beans, Scalia is expected to argue – if the case does go to court – that the banking regulators did not do a proper cost benefit analysis prior to proposing the capital rule.
Scalia is the son of the late Supreme Court Justice Antonin Scalia, who didn’t see anything wrong with accepting lots of free vacations from private interests while he sat on the high court. Eugene Scalia is also the man who previously wielded a hatchet to gut key elements of the Dodd-Frank financial reform legislation of 2010. That legislation was intended to rein in the wildly risky behavior of the mega banks that had produced the worst economic collapse in 2008 since the Great Depression of the 1930s. Mother Jones News Editor, Patrick Caldwell, wrote the following in 2014:
“Ambrose Bierce once quipped that a lawyer is one skilled in the circumvention of the law. By that definition, Eugene Scalia is a lawyer of extraordinary skill. In less than five years, the 50-year-old son of Supreme Court Justice Antonin Scalia has become a one-man scourge to the reformers who won a hard-fought battle to pass the 2010 Dodd-Frank Act to rein in the out-of-control financial sector. So far, he’s prevailed in three of the six suits he’s filed against the law, single-handedly slowing its rollout to a snail’s pace. As of May, a little more than half of the nearly four-year-old law’s rules had been finalized and another 25 percent hadn’t even been drafted. Much of that breathing room for Wall Street is thanks to Scalia, who has deployed a hyperliteral, almost absurdist series of procedural challenges to unnerve the bureaucrats charged with giving the legislation teeth.
“Scalia has ‘created this sense that we’re paralyzed, because if we write a rule we’re just going to be reversed,’ says Lisa Donner, executive director of the watchdog group Americans for Financial Reform. The threat of more suits, she says, has ‘cast a real chill’ over Wall Street regulators, particularly at the Securities and Exchange Commission (SEC).”
Dimon has become infamous for bullying anyone and anything that gets in the way of his quest for wealth and power. Take Robert Reich, for example.
Reich is Professor of Public Policy at the University of California, Berkeley. He served in the administrations of Presidents Ford and Carter and as Labor Secretary under President Bill Clinton. Reich is also the author of 18 books, including bestsellers The Work of Nations, Saving Capitalism, and Aftershock: The Next Economy and America’s Future. Reich received his B.A. from Dartmouth College, his M.A. from Oxford University where he was a Rhodes Scholar, and his J.D. from Yale Law School.
Jamie Dimon made the mistake of coming into the crosshairs of Reich in 2018. According to Reich, Dimon phoned him in 2018 at his office at UC Berkeley and launched into a “diatribe” because Reich had criticized JPMorgan Chase publicly on the topic of “the degree of concentration of big Wall Street banks….”
Reich, apparently, saw Dimon’s attempt to bully him into silence as emblematic of how the oligarchs are taking over the United States. So Reich wrote a book, which was released two years later, in which Dimon is heavily featured in a negative light. The book is The System: Who Rigged It, How We Fix It.
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