JP Morgan Pays $2 Billion to Avoid Prosecution for Its Involvement In Madoff Ponzi Scheme

Washington’s Blog

JP Morgan: Ponzi Schemer

Bernie Madoff has said all along that JP Morgan knew about – and knowingly profited from – his Ponzi schemes.

So JP Morgan has agreed to pay the government $2 billion to avoid investigation and prosecution.

While this may sound like a lot of money, it is spare sofa change for a big bank like JP Morgan.  

It’s not just the Madoff scheme.

As shown below, the big banks – including JP Morgan – are  manipulating virtually every market – both in the financial sector and the real economy – and breaking virtually every law on the books.

Here are just some of the recent improprieties by big banks:

  • Engaging in mafia-style big-rigging fraud against local governments. See thisthis and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details hereherehereherehere,herehereherehereherehere and here
  • Pledging the same mortgage multiple times to different buyers. See thisthisthisthis and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Committing massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See thisthisthisthis and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See thisthis and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The executives of the big banks invariably pretend that the hanky-panky was only committed by a couple of low-level rogue employees. But studies show that most of the fraud is committed by management.

Indeed, one of the world’s top fraud experts – professor of law and economics, and former senior S&L regulator Bill Black – says that most financial fraud is “control fraud”, where the people who own the banks are the ones who implement systemic fraud. See thisthis and this.

The failure to go after Wall Street executives for criminal fraud is the core cause of our sick economy.

And experts say that all of the government’s excuses for failure to prosecute the individuals at the big Wall Street banks who committed fraud are totally bogus.

The big picture is simple:

  • The big banks manipulate every market they touch
  • The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy
  • The big banks own the D.C. politicians … so Congress and the White House won’t do anything unless the people force change


12 thoughts on “JP Morgan Pays $2 Billion to Avoid Prosecution for Its Involvement In Madoff Ponzi Scheme

  1. Yea that govt. accepted 2 billion dollars – you might say bribe money – as a way to avoid investigation and prosecution. See how they do things. GRRRR 👿 😈

    1. Remember digger, these are the self described “to big to jail” bankers who know what’s best for the rest of us. “Let them eat cake.”

      1. Nope Millard, when I buy one of those lottery tickets and win my millions I am gonna build that prison just for those like them and Henry and some others can deside what happens to them and I will be personally honored carry out sentenced. It would be my dream come true 😯 . Yes We could pull straws to see who goes first in front of their partners in crime. 😎

        1. We don’t need a prison digger, just a lot of hemp rope and a big ditch. It’s the same end result if they have their way only a 40 cal. bullet will be used against us for more efficient processing.

          1. We need the prison to lock them all up waiting for that rope that I will be useing, and then the others in the prison will be digging the ditch where they all belong. It will be a glorious day for us all Millard.

          2. I thought we rented all those NFL stadiums to process and dispose of these criminals. We’ll build the gallows in the middle of the field, sell tickets and popcorn, and watch traitors hang. I’d pay for a ticket if I’m not putting on the show.

          3. That would work too Millard, but I was thinkin` about just a private showing just for us here In The Trenches. 🙂

          4. Ya know digger, maybe this North Korean leader found The ultimate, high buck ticket. Just imagine a stadium full of screaming spectators watching those condemned to death be stripped naked and devoured by starving, wild dogs. Obviously too extreme but those into marketing are already thinking camera shot angles and pay-per-view revenues.

          5. Yes I was thinking that too Millard. Give them a 5 second head start and then let the dogs loose . Now that would be excitement 😯 😎

        2. I can envision the dogs beginning to tear the intestines out and running away with the end trails. Good lesson for any of those potential traitors still “sittin’ on the fence” hoping to be able to align themselves with either winning side. To those who ain’t decided where your loyalties are, well, time’s up. We don’t stop for hitchhikers.

          1. There has been plenty of time for those undecided/confused ones to decide where their loyalities are Millard……….. Time for me to get a power nap in guys. good night all. gotta be back up in about 2 hours to stoke that damned fire ya know.

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