JPMorgan has been forced to pay fines and restitution of $2.6 billion for their 22-year role in aiding and abetting Ponzi-scheming Bernie Madoff. The people of Detroit must demand the same – the Detroit Water and Sewerage swap temination fees paid out in 2011 and 2012 by JP Morgan Chase, Morgan Stanley, UBS and Loop Financial must be returned to the City of Detroit.
The money used to unwind the swaps would almost cover the utility’s $571.7 million in planned capital spending for the five years through June 2016, according to bond documents. Or it would be enough for the sewer system’s $519.8 million fiscal 2013 budget, with millions to spare.- Bloomberg News, September 13, 2013.
By Pam Martens, Wall Street on Parade, January 13, 2014
Last week JPMorgan Chase paid $2.6 billion in fines and restitution, signed a deferred prosecution agreement and walked away from their 22-year involvement with Bernie Madoff’s Ponzi scheme. But according to court documents filed in 2011 by the Trustee of the Madoff victims’ fund, Irving Picard, this was not a simple case of poor risk management at JPMorgan. This was an operation structured like those Russian nesting dolls, with the Ponzi scheme as the outside doll with many more frauds layered inside the big one.
After reading the documents released by the Justice Department in connection with the settlement, the Los Angeles Times asked in a photo caption of a smirking Madoff outside of Federal Court: “Bernie Madoff: Was he part of the JPMorgan ring, or was JPMorgan part of his ring?”