so JP Morgan is a cited the acetyl with the SEC
the is a what appears to be a sizable fine it's a $920 million dollar fine
and why is that well that's because a of the London whale the bahcall
where they did derivatives trades that law some 6.2 billion dollars
so there are some irony here that their bank has to pay
another 920 million dollars because if the losses of 6.2 billion dollars they
already incurred
but there's a good reason for that you have to tell
both your board because they are the ones that need to make sure that the
executives are doing the right thing
and look out for shareholders and you have to tell you regulators
what your actually doing if you're hiding risk
if you're hiding huge cables as we saw in 2008
he could blow up not on just you the executives
but the entire bay and not just the entire bank but the entire
economy because now these top banks or so interconnected
with not just each other but also the giant corporations
that employer so many people that if they go under the drag the whole economy
down with them
so the fact that JP Morgan hid what they were actually doing
and did not report a properly to their own board or to the regulators
is a serious serious problem and by the way the Justice Department at
continues to look into this and so does a US Office of the Comptroller of the
currency
so there might be more fines and actions they had one really positive note about
this
is that for the first time in a long time a bank actually admitted they did
something wrong not only do they pay the 920 million dollars
but they said yes that was our fault okay now
it's a seem like much to the average guy right but it is a big deal because the
banks had not been forced to do that by prosecutors
for a long time for such a long period of time know when Elizabeth Warren got
up
and ask the question on the top regulators in this country
when was the last time you actually try to prosecute
some other top banks for fraud there are like
day literally did not remember
they weren't even trying that's why it's so important to have an actual progress
alike Elizabeth Warren in the senate to ask those tough questions
and after they got embarrassed all the Sun we look at that
they demand the JP Morgan say they were comparable
and actually JP Morgan does do that it turns out hey we look at that we did
have some leverage over the backs
now on the other hand don't get too excited well anybody from JPMorgan be
going to jail
at least for this portion what they've admitted no
that to oh the bankers
individually have been arrested and
the guy who actually did betrays London well bruce a
absorb Bruno XO
is of course not one of those guys he actually turned on the guy above him in
the guy below him those are the two guys I got arrested
but as a bank there's not going to be any more
criminal liability beside the fine but I am i say let's say you know the finest
gigantic 920 million dollars well not exactly
seaview JP Morgan it's not as big a deal
because you already make a ton of money in fact it's only 40 percent
above the court banks quarterly profit
up six and a half billion dollars so in one corner of the year alone they make
six and a half billion on revenue and profit
so is 14 percent their profit for just one quarter
to give you more context on it how much
would it take for the bank to pay this just 13 days
a profit and in fact if you just take it in former revenue
this just three days and 8 hours or the revenue
for JP Morgan so in the end even though it looks big
where we have we have the bank saying okay fine we screwed up
when they obviously screwed up and didn't tell people what they were doing
and lost a lot of money doing it and we have a fine
it's basically 13 days in their profits
now why do you think the key breaking the law why do you think the keep
not telling regulators what they're doing because if they get caught there
like
oh here's that tiny percentage of our profits
and let us keep doing exactly what we're doing so you think the problem is solved
I got a bridge in brooklyn the so