JP Morgan Chase’s Crime Spree (with Matt Taibbi) Full Interview


cots sts on the phone it’s a pleasure to
welcome uh… back to this program from uh… going stone magazine uh… say he was live blogging folks as last
friday uh… welcome to the program at a be
welcome to the program at about and well you know symbols sampled
buddy at arm it turns out now let’s let’s just let’s just take a step
back here because it’s it’s it’s amazing irene i don’t know i don’t know what’s more
amazing that we’re rehearsing these hearings of no for five years set six years later uh… later than probably should have been
held unearthly maybe decades later than they should have been held but um… on friday the senate baking uh… subcommittee held the hearing where they
invited ah… executives of j_p_ morgan to come up and explain to them holidays they suffered dollars of losses on these uh… trades that the iraqis machine the
happened where they should not be able to s sulfur sized losses yet hide it and and and to allow it to continue
right up such as backup just tell us just you know uh… we’ve talked about
this on this program in the past obviously many times before but one of the contacts j_p_ morgan and jamie diamond are in the
context of of this argument too big to fail banks
because far as i can tell i mean i watch that
movie too big to fail jenny john and he was like use the one qal cool cucumber who really
did everything right as far as i can tell right yedda that the river been alleged in the
boat about j_p_ morgan shooting that their there the quote-unquote good bank uh… and always builder bank that have bad reputations film
called then um… young commercial banks like bank of america that everybody
uh… although the company just corrupt if you do it right you now you can be
like j_p_ morgan chase then and not a problem and uh… your there
is found institution that makes a lot of
money for america blah blah at collection the reason we’re having hearings about
the stuff it is and into the big question that that
people don’t understand what why are we having hearings about the fact that um… a private banking lost a ton
of money last year uh… like we shouldn’t care right theoretically uh… but we do because jpmorgan chase the commercial banking uh… which means that the federally
insured depository institution for the if it goes on there um… the f_b_i_ he is and i have to bail out the back or or as we found out
in two thousand hailed it’d be know the whole government plus the fed
and a lot of other people will be going up a bit so we have to care about it when game
suddenly start acting like high-risk investment bank and lose tons of money and do it without
the regulators having any clue what happened in that that’s what happened last year uh… at the beginning of last year at
this met this guy hinder in london yet and he had basically that hedge fund
hidden inside of j_p_ morgan chase and uh… sort of overnight if they’re losing
billions of dollars and nobody knew about it until until it is at the newspapers an
applicant hearings were about an impartial the myth of rajiv gandhi the uh… the myths about there being a good bank that is this big is that uh… the implications are that it’s not
a systemic problem in the sense that too big to be if failed banks are are
problematic but just that it’s that you know we have
some bad have actors like in any uh… in any you know system they’re back at actors in their good actors and that
doesn’t implicate the system but so that’s what it seems to me has been
so uh… why it’s been so crucial to maintain the this myth of a good bank because it supposedly
says uh… we don’t really need any massive reforms we don’t know really
need to uphold these banks apart many way
because he can be done properly and uh… it’s quite clear that that’s just and you can predict what the government
a panel endorsed this idea during the crisis because when companies like bear stearns and
merrill lynch uh… and washington mutual when they all you know ordered circling the drain or or what what if we do incentive taking both companies over telling them off breaking them up and
smaller banks which is what rationally you you can probably would
want to do is is to make the and companies web dangerous they just took the company admits
supplement to even bigger company um… so you know bayer sterns pushed into into j p morgan chase washington mutual gets thrown into into wells fargo so the government of felt bought the
fight the event of them if not this prior to the bank of that inherently the problem it’s that summit
some of these companies are are more screwed up in a responsible
another’s so what we can fix the problem but putting
that they concluded that and ended it turns out there that not if not bout the cave the sizes generally
a problem and we should add that do one of the best examples of notion that the size of the banks is
problematic is that our uh… uh… zehra turning general came out the other
day and reiterated what we’ve heard uh… now on several occasions that you really can’t hold these people uh… to account for all breaking because they’re too big and uh… if we get if
we put any of these guys in shell then uh… you know we’re going to wreck the
economy so it it sort of the classic uh… facts
on the ground had a situation where you make them even bigger and then you know and now they’re
they’re there’s nothing we can do about it right yet but that it’s kind of a it’s kind of an amazing combination of moves right like for
first let’s create a bank gigantic like chase you know taking bear stearns and selling
at the chafete some absurdly low-price if you’re a member of the government
actually flash the prideful barrister and too to ten dollars a share so that uh… so that chaichana acquired in emmett you know when it was last reading of the
thirty hardly shared some or something uh… so they can make they give these these banks enormous public support and bailout been discount
that they can acquire these other companies when they turn around and they
played like a couple years later all we can prosecute you’ve got to go to bed hoboken enough to look at the
combination of uh… of movement and feel creativity and uh… so yeah you started your uh…
here’s your live right now we’re just a reminder that uh… that they that chases made eight billion in salomon’s in the in in just the past
welp i guess three three-and-a-half years they spend steam billion in legal defense vcs during that period i mean this is release is amazing ajai i use the analogy before
you came on that you know it may not be fair to say that uh… their whole oli a criminal enterprise uh… but i don’t know what is immediately people though to rob a
bank presumably they pay attention to that the speed limit on their way there alright uh… what tending to her their
driving with a car that has worked well i’d say you know itself again i fully
accrual enterprise uh… yet but it it’s shocking to let’s walk through
this his uh… over the course i mean your assessment of the hearing in
my estimation with that you are pretty impressed whale bout the job that the senators did and you see this hearing as pretty important at this
point what what i’m get to getting is that there’s been this kind of change of
heart in washington uh… because i just keep hearing different staffers working for different
congressman and and separate and different voters are coming around on this issue of convicted
felon and there are both republican and
democratic senators who are starting to cut a creep over across to the other side away from the bank
from out of the fighting cheaptickets something about this um… it’s a third they’re continually
applying pressure and and and the you know by taking on chase head on uh… n_j_ disposed to be a good day
consist of is is all bombing quote-unquote favored banker uh… that it was a significant thing that
carl levin do it if it’s one thing to go after uh… u dot com wrote company but they
went after that the most reputable of the too big to fail banks and they basically did an autopsy
delivering autopsy about how the accounting at these companies work and they showed everybody that their hero internal control but the
company to know you know we have absolutely no idea
what’s going on and uh… and that just explode everybody’ll to
the danger that war and i i think a i think even it’s it’s going to become uh… both the
conservative and uh… though on the liberal issue because neither you know the the liberal view of it is going to be with the one i
have to view not support the dual corporations but the the conservative
you with why should my tax dollars go to support you know this this kind of odd activity
you know they should be thinking this woman in the market uh… so i i i just think it’s
significant infant that there are more people moving over to to
that flood before we go in and break down now these hearings what do you think for
that i mean in a defeat what u hemi what what accounts for that because
he used to me that this information has been more or less out there uh… and
you know from my perspective everything’s well uh…
what do you think accounts for immediate think it’s simply because where now outside uh… in some ways were outside of a lot of
the accounting uh… uh… that that could have taken place
within the statute of limitations for all the mortgage fraud do you think it’s things like uh… departed in that documentary the
untouchables and some level seemed to have there’s growth hormone therapy s
but but you know uh… uh… i think it’s uh… to get the budget
uncovered number one i did wall street made a big mistake
when they uh… one may abandon the democrat in this uh… election season because b what they traditionally do is smart they
just throw ’em tons of money at both side and they don’t really make a directional
bed on politics mimi i believe that usually bed according to
blow up to eighty five other word this it’ll bolivar seventy-three uh… you
know bet to win over john mccain either to
get a lot of seven dollars mcclemon came three dollars but february zero eight operated out of
the vote nothing do with politics it’s just purely we think the fact of
the women that i have been this time around i didn’t do that even
though a bomb or with the heavy favorite they’ve they’re really supported um… romney in the collection and so allot of
democrat more scratching their heads afterwards
roofing orgies of you know we moved into a new
carrying water for these guys three years and we’ve been helping them in we watered down the dot frank an actor
and we’ve got all that we bailed them out and pet made cotton ran on a in the
election fever so what are we doing um… there’s that and then i think the major thing is that
there the people who work in in the fed and in
the regulatory system are increasingly screaming bloody murder about all the
stuff i mean there are uh… there are it’s not just the dallas that anymore
there with the uh… new york uh… federal reserve bank official who
did the pretty big speech in the fall about out to be too big to
fail of unsustainable um… and the emu wharton they ask
building company to make a political living wills in other words he knowed a plan for what happens if
your company goes out of business and the fed determined that these wills
were complete fiction that the they’d didn’t do a good job um… and so everybody’s worried you know that
i think uh… it just have to do with the general fear that these guys learn nothing after two
thousand eight the old their are continuing to support
themselves with massive amounts of free government money and you know when they blow up we’re
going to have to go ahead and and pay for all this again and we don’t have the
money to do it it if it’s important that i think people are just worried way no wonder you know uh… wonder what the implications are eleven retiring
amin i discuss uh… you know i just look at
uh… what uh… uh… was ted koppel in did when he had his two years as a sort of uh…
temporary senator he was uh… abide his chief of staff he was uh… basically a
took over by the sea was appointed to buy the cd and uh… he
seemed to be the most aggressive uh… senator uh… in the senate in going after this
stuff and uh… you know he had to your window anyting necessarily have the seniority uh… to push these things through uh… i
wonder if uh… if eleven feels that you know this is uh… because it it’s when i heard that he was here at
our it’s it’s you know one of two things of course when he’s gonna go get a job
at citibank uh… because that’s what they do uh… or uh… maybe he sees like that baby this is my legacy in some
respects well you know the built uh… but you know yet this permanent
subcommittee on investigations and he’s built uh… pretty impressive thing with that with that group ameen it’s
small group of people um… there’s maybe fifteen people in the staff and end there they’re like died hand crew that investigates really hairy uh… complicated uh… you know financial scandals they did the k_p_m_g_
investigation years ago there was there become a lot of money laundering of
um… the typical man investigation they did hsbc now that the county and to their date you know i think
though collectively that that levin of leaving behind his he he at built uh… enough something within congress that is picking up some of the
responsibilities of the regulators set of path stop doing their job um… with with all the stuff i mean
this you’d investigation should be being done by a senate subcommittee they
should be being done by um… the o_t_c_ or the fed or the
f_e_c_ um… and then and what he’s really
doing one bye-bye commissioning these these
investigations of it for the implicit indictment of directly at her regulators say you got their are falling out of a
job and we have to do it for you and that but i think it’s pretty cool a bit and
and the people the desired are are pretty impressive people sources say the
ccs the office of the control uh… comptroller of the currency uh… ready to tread they screenwriter
exactly banking regulator yeah apart so much that so uh… let let’s just walk
through this just remind people of of exactly what the uh… wanted whale trades were basically cheaper public money they have
all the all the composite may need to do come in with the money to try to try to
make a you know more money and one of the things they
did is they created this essentially a giant hedge fund within the company it caught the called the
synthetic credit portfolio and there belly kochar traders who are betting on things were credit
default swaps another derivative uh… instruments uh… and what happened was um… these guys had been making a lot
of money buying uh… betting on derivatives for years um… last year when i get to get was
around december january they started to bed uh… on that corporate credit uh… i get there were expecting uh… big bounce uh… in uh… performance at the beginning of last
year but what happened with the market went the other way i think are also there is that there’s
an interesting comment sidebar hearing is that uh… than some people from
affected uh… there were other traders to work
or consciously trying to be a queen uh… shape because they knew that they
had created a very big long position that they have bet uh… and have a li in this one
direction and that everybody else hated them for months but they all when the
other direction to try to make the muppets money uh… but on the matter with the point in
point make a big bet on corporate credit in in january left here they started
losing tons of money and then instead of cutting their losses
they doubled down and they thought it would be even more money and so what what could have been a four or five
hundred million dollar loss suddenly turn into you know one point two billion dollars
one point five billion dollars in before they were done it was it was like six billion dollars uh… and this this whole thing uh… actually came out in the
newspapers before by the federal regulators knew about it
it and its it’s even possible that some of the came out within the papers before
of the senior management at cape new battery um… because they had they had been monkeying around
with their accounting internally fell much that they add lost
track of how much money they were actually losing for that will be hearings a really all
about it happy to have you uh… out of these banks do their
accounting um… met and how could it be possible
that you could lose six billion dollars and
nobody could know about its and and presumably i mean the way that this is should be working
is that they should be reporting these losses i guess primarily to the s_c_c_ uh… in
pratt and in uh… and to the s_e_c_ insofar as how
they represent the stability of their bank too uh… u_n_ poorly report and and so what
would’ve happened assoc so what would’ve happened if this should be done properly ended in the way that the was supposedly um… all foreign terrorism there reporting as they’re going forward these losses to the uh… ccn at one
point the o cc says hey wait a second um… you’re now because we the the u_s_
government back stocks your banking fourteen different ways uh… you just your you’re just being
too risky all-purpose peoplepc didn’t even know about the this into the
fund um… it’s not even mentioned in any documents
until like january of two thousand and twelve any deducted that unbelievable because but by the
time edit very picky this formatted notional value of like a
hundred and fifty seven billion dollars now that i thought the fed at that out
much it would actually work but interned etc everything went i’m completely wrong that bad he now employability benedict benedict
that how much the liability was um… so it rejected a candidate running and the for the primary banking
regulator doesn’t even know that there’s a good to put up but the important thing and a
um… they were not uh… providing data about this this fund to uh… to the f_e_c_ that what they were doing there alone
bingen the profit from austin that’s funded with other stuff and then
ending in kind of an aggregate uh… number uh… kid to the regulators now one point when they started to lose
money uh… i think that in january jamie diamono orders his subordinate just stop sending any dated all about this fund mobile completely you know it probably
would obligated legally to do that uh… so that was uh… one thing that was incredible that
went on for about two weeks until the o’keefe the before pent-up returning data again the other thing is when they started to
lose money in the far end instead of um… recognizing those losses they’d just
change the way the uh… measured how much money within the
fund so that you know you have all these derivative uh… instruments and don’t get a little
bit of a subjective art too to evaluating them uh… traditionally there was with a
very conservative way that people would would value the securities already determined uh… instead the they chain is the way they did it in to take
the most optimistic view of how much do you think you’re worth um… and put out that the very typical thing
though he seemed during throughout this entire crisis period that whatever that
that get in trouble with the food chain there their methodology of how now they measure how much thereafter ther were uh… for those with that some of the
issues that went on during the time the the you’d be paying premier because defeated
stopped giving data when they started going wrong and they
change their accounting methodology when things went wrong so please please when they stopped giving data to the
s_e_c_ their arguments are doing this because of felt that their data wasn’t safe with
the other cc in that that there was right explain explained that justification pandit
hahaha i just we should also do not gloss over the
fact that they just simply decided to not no longer uh… fall off because they just dont like his
yours bad for us uh… sort of user you know
you can come up with any type of explanation but there are our procedures theoretically it’s not
like you know jamie diamond doesn’t have
access uh… to talking to the regulators in
some fashion by saying like a we have a problem it’s excited now that you know uh… you would be
implementing it and and and dot making a tax wouldn’t go on and i don’t went after them uh… in the year and
about this intellect let me get this straight you guys were concerned about
confidentiality for you just stopped following the law and even twelve thirty p_m_ email
weakest were worried they’re relieved for you know uh… you know it’s very
important for us that the state of the confidential and and the funny thing is that bad occurred
but but but but came out of me and clear would look at the commit complete and
total then to the to this guy uh… might have been doug prompting to the
uh… the witness from project uh… yet it didn’t sound like he was dissembling we’re trying to cover up his
deep thought he was giving apartment perfectly reasonable explanation indicated that a couple saying you know
we don’t but i think the rest of the for america
we we don’t that there are filled with having the option of when we get the follow on when we go talking apparently
you do uh… and it was there is no surreal moment and put in the in the
hearing zero is equivalent of danny boyle thoda blacktop gone eighty five fifty five-mile his own a gun but yeah
but officer i was late we are pleased to learn you know i just
wanted to the butthead tv shows i know how long are you going to do the irish
in my car stuff embraces itself it if okay and so uh… the uh… the other ameen master of uh… of offenses that actually came up in
this it goes even beyond this right i mean a uh… they their internal control i mean it’s so hard to sort of get through this
is whether or not there was a failure of their internal controls or whether they
specifically said like let’s set up our internal controls in such a way as that so that they are not so
controlling and that there are a little bit more opaque minute develop exactly what happened out
there and i’m not exactly that exactly the problem which is day you know what they became aware of the
problem the senior executive at this company they should have regarded and put all my god you more and
do you keep it had to change your accounting you know procedures and pen i i’ve lost
with that way we’re going to get a bill for that uh… i think that they should have digital
immediately you know prone some of their whether subordinates over the edge and and force them to take
the rap uh… but that didn’t that they went in the
other direction completely and they did and they just uh… uh… took a lot of
to another level you know they’re holding a conference
call uh… for investors on april thirteenth activities already
come out and they’re basically saying hello don’t
worry about that peoplepc you’ve been aware of that the entire time me got
their line due to investors be delight in their in
their f_t_c_ typical yours i mean they knew how much aloft was back then uh… and made the under report of the losses of american he
disclosure by about uh… six hundred million dollars uh… sociological so this is where is
and where no one point eleven says that on april thirteenth twenty twelve chase had an internal report showing one
point two billion dollars in losses uh… in this uh… this uh… with
london well-funded centrally and i know drew she is at the uh… of the
former us c_i_o_ categorised or something like that here she peacekeeper are of says she was
predicted that report but on the following monday uh… she met with the s_e_c_ and and just flat-out lied told the losses
were earthly but less than half right exactly jacqueline ish is that it was a would
day she knew it was one point two billion and she told them it was seven
hundred ninety million entire fearing that if she says the
reason why she’s alive uh… why she did daddy she says because
the other cc as far as i knew had been given uh… d uh… daily profit and loss reports so i dress what’s on sat there is that
they should know that i was lying or should have stepped up and said hey
wait a second don’t you mean one point two billion instead of five hundred
eighty million and she would have gone right follow for the right right exactly exactly when she came back with that we’ve been
sending you the daily numbers which are which we often find out what the hearing
that they haven’t been microcredit no you know that one of the
things that came out of that doing the actually what they’re getting
those but billy numbers but she’s saying they should have been
able to figure it out because we were telling them the raw data so it didn’t matter that i lied um… primary banking regulator of the united
states uh… ten we know what was last year the biggest uh… that kind of after in the world yet but
with that that blood material it meant nothing to worry about because it’s the
government’s fault for not figuring out bulk now so right that they can do to get a you know some insight into into the painting of the people you know
it which is also simultaneously claiming
that she didn’t that uh… they weren’t sending this data to the
uh… cc right i mean sem june basically what
we’re seeing here bit by bit is how ease officials have created firewalls
from cell in terms of accountability idolized here but i do that based upon than uh… the
knowledge that you have the data to know that i was lying now was that you didn’t have the data to
know that i was lying so i’m not really responsible because i live in in good faith in thinking that you knew
that i was lucky right exactly uh… or something right infect or supplied dot i don’t
know every in so crazy but yeah you’re right that it
what what what comes out of the hearings is that is that uh… it’s never anybody’s fault uh… it
though is do you know i did that’s based on the information that i had at the
time uh… you know what they did to the bottom
line in all this is that they they did know and they just wide everybody they lied
to the f_e_c_ they like to the elected to
the daylight to do the investing public uh… and they like the congress it’s remember
you know jamie dimen himself had to go to congress to answer questions about
all the blood here and uh… you know a lot of the things
that diversions that he gave in in that hearing and i did not quite square with with
what the committee found an ad come in its investigation so but and even take you already confederation
nothing is going to happen and that that that so infuriating about that now do you think she also wanted ruchi
also sort of ultimately said um… this i got lied to you about uh… what
the losses were by two guys amak chris anna ma when art attain po i guess right coincidentally uh… are not subject to u_s_
jurisdiction so they can’t be here today essentially right i mean is that great i mean that’s the only where they were a
whole bunch of people emissions actually did a big notation academy ominous
location at the beginning odb eleven report which is that x_y_ a_b_c_ and the official did not
make them till they lable to be interviewed um… report concluding a total anarchy nato
and all these other people who are in london or ed ed i’m not exactly sure
where they are but they’re out outside the jurisdiction of um… of these regulators and uh… so yet they fit it’s not an accident at me that utilises walk onto the regulatory
arbitrage that that um… if you have on wall street now which is you go and you
find the uh… the location where the laws of the weekend and that’s where you
put your you are on headquarters for your
operations and that’s why they’re so many um… so many desirous trading fund uh… are
big from london because the regulations there or weaker than ours uh…
especially in terms of drew the trade but right you’re you’re exactly right
and still make i mean i you know i had told one of these things are i mean hopefully my father’s not
listening to the program right now but when i was in high school uh… there was you know at a party and i love
my father was a way one-time and uh… the apparently have found uh… some
contraband that was left after the party and uh… he uh… pierre confronted me with that and i
said it must have been that guy jimmy sullivan who came over with my
friends and why i don’t know very well at all
his friends of these other friends and i dont i’m so mad at that jimmy sullivan i’m never going to talk to that guy and
get these fires that destroyed his debt to me which was easy to do because you never existed i mean that’s more or less what what
we’re seeing here right in so why do so now another my father did not have the
ability to track down jamie sullivan because that guy dropped out of school
charlotte after without incident fifth and moved to north carolina as far as i
can recall or what now what does that what what happens next week so you’ve
got this uh… this uh… permit uh… senate uh… subcommittee but is it as you know these
uh… these these crimes and what what happens next is is just going
to be fairing uh… dis carl levin then you know cut
out something from dear abby in in the early exit on uh… jamie diamonds uh… you know book bag in the morning and say
don’t become a statistic uh… twenty at four oh one what happens at this point what what should happen and what what i think
probably will happen is that some what one of the regulators will
pick up the case and they wold e craft the film an out of it to cure
remember when uh… when levin pecan goldman uh… it among others dot kindly need to do that
and that all report that he did on on goldman fact
also included a lot of information about washington mutual and and put your bank um… but after that the f_t_c_ took the um… a result of that of that uh… investigation that you’ve
been at the business of the of a civil uh… prosecution against goldman where they
got five hundred fifty million dollars which would like a one twenty four th of
what the they got from the energy bill at the top of the matter anyway that the
point is typically what happens when come uh… somebody like the committee does really good investigative work um…
some other regulator will take it that run with it i would get that there are a
lot to different possibilities here the department of
justice could take it up uh… the yet if he could pick it up because it was
the whole section in there about them lying in their ten q disclosures about the trade uh… you know their accounting dire
regularities where they can be prosecuted by the d_l_j_ um… so that you did and i love you dot
we can go on uh… i’m as you will see a lot of uh… private action to write me
because if they have all of you yet but here’s the problem is that a lot
of these settlement people when they do settle and i think that would happen with hsbc
well i forget what happened to speak it but
usually typically when the total they say work settling we’re gonna give the
government money what we’d win either admit nor denying wrongdoing which doesn’t allow people who are suing privately to
automatically when sometime in the settlements without
afterwards actually helped the company because uh… the they make it harder for them came uh… civil court to make the
determination for them guilt or innocence uh… when you know the regulators unfiltered
insist upon that uh… so that the danger here uh… ought to do a
lot of people art i want to um… anybody lost money uh… you know making
these trade there every everybody who is on the other side of uh… you know that trade uh… they might want to but uh… uh…
you know what got me what what happened in terms of which regulates pick up the ball from
here and then there’s a sort of the the
larger transcendent narrative that this is one more example
or really ended its it seems to me it’s even larger than that because this is
closely the good apple in the bunch right in if we realized the good apple
in the bunches also rotten to the core then then we either
way we and i and i’m really using the not the royal we hear him actually using
sort of maybe more society or our government and aided needs to who recognize that too big to fail is
simply heeheehee dad adds fuel to that fire that today to
fails not sustain definitely definitely and then there is you know our jerry brown uh… the senator from ohio has his
trying to revive list brown kaufman amendment that yet
but he was putting a couple years ago that would captain size of these companies and he’s
doing a letter to you is that right i mean right yet exactly what i’m talking about it
like there is no erected weekly we could to keep getting it will be back in june uh… input into this camp uh… you know it not uh… jerry brown took off many more
terror branded later in department budget carl levin uh… it’s carl levin john mccain
mediated so you know and we have a good look for now and then but i think that there’s momentum cluded
something about this issue it’s just it’s going to take you know probably one more picked
disaster uh… but the doctor tell lined up right now for
people to do for me because now that everybody can fee how how badly the company’s orion and
now i’m possible is intrepid accounting um… packet imagine that congress and the f_b_i_ he and and the said in
all these different patient are really don’t want to be on the hanukah uh… for backed up in the company anymore is there are there are somehow are are
you wear a mask imagine there must be and then maybe to a certain extent it’s
their in uh… in the uh… uh… legislation that uh… uh… brown is pushing with vetter but um… good sort of conceptual road maps or
even maybe even more specific then than conceptual road maps of just how you
would divvy up these banks i mean you know
presumably you know this is that this is seems to me is the time where these type
of plans must be in existence because if we do have to wait for the next disaster as it were there needs to be
solutions that are at hand so that the the momentum built by that next disaster can be can
be harnessed and you can put a plan in place to begin to
pull these banks apart well uh… and uh… the brown planned
and had to be great plan didn’t get the incredibly simple it took tow you can’t
be numerically bigger than this amount you
can he can have more than ten percent of nation the bobbitt than you can have
more than this percentage of um… you know the the uh… of of the investment banking
market uh… and so it can if you go over that five they forced they force
you to fell off um… divisions within the company but you know in talking to people about
this issue i think the more likely route that that that the news uh… we’re going to have some kinda like justice department
prosecution or or regulatory settlement involving one of these companies uh… or maybe a couple of them and at the condition of the settlement
they’re going to force them to break-up that that too much simpler way of
affecting this changes but we’ve been talking to require congressional approval um… it’s it’s going to be a thing that
happened and concerns only five referred to these
companies um… you know evidence it’s not it’s not a big number um… i think that there could be he
hugged print put the like uh… eliot spitzer global settlement from the early
two thousand when he took all of them in and if we
got all the banks in the remand said look you know i could pick all your money for
all the stuff do you have been doing button that i’m going to amid insist
that you stop doing business its way uh… i think that the kind of thing that can happen it
could just be a paying were prosecutors says look look look at all you guys in the
room and faye you all have been committing the frame accounting
violations you’ve all been lying to us same way um… until now instead of taking all of your money
which i could do i think it because if you get the or broken the law or during
your jail uh… you’re older they get smaller or
are you were we’re gonna put out a bit i think that’s a much more likely route
that that’s going to go is anything you also of all a disservice the political implications of legislation
that uh… uh… you know we have someway nationalized all in interfered with the free market at
that point right i mean and it becomes more uh… right distant exit policing action exactly which is unit work you know we
wind up dot the way it should be everyday it it the uh… well i i mean i i guess after you we would like ragged there to
be some kind of precedent saying you can’t you know be so big me that uh… you know we can’t prosecute you if
you commit a crime uh… it would be great if there isn’t a
law that said that but the reality is that but but the problem which was
really a criminal justice problem if if if the company just opaque the that uh… did become a couple
unmanageable on uncover a more uh… so we should govern them you know
we should we should just have the regulars say look this is this is got mad out of our control you
don’t have to just get smaller um… that’s what we’re gonna do instead of
instead of picking on your money cannot and presumably ones one or two banks uh… are pulled apart there becomes political pressure becomes did the becomes more of an equilibrium
in terms of the political pressure right because these banks don’t want to
compete against these other too big to fail backs right grade but also i i would imagine
what book work happening the share prices of the other companies
are are gonna start to wobble full-blooded because the market’s going to be
uncertain about their future uh… you know if if you were to have that
kind of an action but love low i_q_ no speculation of called far in the future
but what’s just so if you look at
interesting to me is that i think there’s just momentum toward that now
you know i did that kinda stuff is not going away it’s not just were reacting to m s global or we’re
reacting to the crash of two thousand eight if i could we’re going to continue investigating
you and and every time we do it we just keep fighting worse and worse stuff and
and that that the headline for all this in so that that pathologist well i can’t
wait until my uh… my newborn child has the opportunity to have you back on the
program stopping effect equity social network self-guided idea uh…
graduation yes my son was born a couple of the uh… week-and-a-half ago herself wild
and uh… training him feverishly uh… with the hopes that this happened
sooner rather than later effect uh… city come on intel is a about that happening but uh… weapon in
the meantime maybe just you and i a sweet recount our hopefully our our
march towards that uh… matt tidy rolling stone magazine
thanks so much for joining us

19 thoughts on “JP Morgan Chase’s Crime Spree (with Matt Taibbi) Full Interview

  • The America people are not stupid because action speak lord then words and this people are just paying stupid and think the people do not see it. That is paying stupid with greed .

  • Bear Stearns was NOT worth $30 a share when they failed, they were valued by the market at that price, but this valuation was overestimated by a number exceeding $30 per share (as Bear Stearns was now valueless,as they could no longer function as a financial institution and had far more in debt than their entire value.

  • Because corporations have taken over my friend. They buy the politicians and essentially write the laws. Until we get money out of our politics, we are FUBR.

  • people like matt taibbi should run for political office running on this exact subject as their platform. its the only issue that matters . this issue must be brought to the main stream everybody has to understand this .

  • Stable like in 2008 when all the national banks were loading up on derivatives? lol
    Or stable like now when those same banks have grown by 30% since the last big financial crisis?

  • xadam2dudex
    why don't the investors sue the hell out of these bastards or bring criminal fraud charges against them ?? when these people said all this why didn't congress just instruct the DOJ to arrest them right there on the spot for lying to congress and to government regulators ?

    I might venture some uninformed guesses, but Im afraid that would result in the harsh criticism of those mentioned congress and government people 😐
    Its interesting to see the typical run of the mill capitalists in the aftermath, condemning the financial industry harsher than any marxist critic, people like Steve Keen etc. "Things will change when bankers feel more safe inside jails, than outside them".

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