05-02-2011, 09:27 PM
JP Morgan appears to be engaged in a damage limitation exercise.
Here's Market Ticker's Karl Denninger's take on JP Morgan's, ahem, role:
http://market-ticker.org/akcs-www?post=179151
Here's Market Ticker's Karl Denninger's take on JP Morgan's, ahem, role:
Quote:Systemic And Intentional Fraud, Part Deux?
And in a follow-up to the sordid accusations against BONY and State Street, we have this!
Quote:J.P. Morgan Chase & Co. ignored or dismissed warning signs about the Madoff fraud even as it earned hundreds of millions of dollars from its relationship with his firm, according to a lawsuit unsealed Thursday.
Uh yeah, I've speculated on this before. How do you have a custodial account relationship with a huge fund like Madoff's that never clears an actual trade and yet not have any idea that something funny is going on - and that "funny" thing might be criminal?
Well, as it turns out, the bankruptcy trustee believes that not only did JP Morgan suspect something was wrong, they were pretty sure of it and yet continued and enabled the relationship for the purpose of making a profit.
Quote:"While numerous financial institutions enabled Madoff's fraud, JPMC was at the very center of that fraud, and thoroughly complicit in it," according to the 115-page lawsuit, filed under seal in December by Irving Picard, the trustee seeking to recover money for Mr. Madoff's victims and made public on Thursday.
The profit, in this case, was more than a billion dollars.
JP Morgan denies wrongdoing and knowledge. We'll see.
I'd argue that it's pretty tough to move the sort of money around that Madoff did and not have any idea how it's happening. But that's me - after all, we are talking about a total "take" here of $50 billion, right? That's the total scam that Madoff supposedly was responsible for, which strongly implies that this amount of money had to either come or go somewhere, and if it came and went without leaving any sort of trace in the market then I think we got ourselves a little bit of a problem.
Picard's lawsuit was filed under seal in December.
http://market-ticker.org/akcs-www?post=179151
"It means this War was never political at all, the politics was all theatre, all just to keep the people distracted...."
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war