JPMorgan Shareholders File Suit Against Dimon in NY Federal Court

Susanne Posel, Contributor
Activist Post

Jamie Dimon has come out publicly to downplay the severity of his bank’s recent $2 billion loss.

The Central Investment Unit (CIU) utilized a different value risk calculation (VaR), which gave them greater leniency in the assessment of their trades. The purpose of the CIU was to covertly set up risky positions within the firm.

This CIU reported to Dimon directly and were given special privilege and separate risk management during their trades. The inception of this distinctive CIU goes back to 2005.

Because of the pressure and publicity of this incident, as well as the flippant demeanor of Dimon, the shareholders of JPMorgan Chase & co. have filed suit against Dimon in a New York Federal Court. They cite the $2 billion loss as the purpose of their legal action.

In the Congress, the Volcker Rule is being proposed by Senator Carl Levin. It would forbid banks from making risky trades for their own profit. This federal proposal would severely restrict Dimon from conducting his “business as usual” which results in damage to our financial markets.

The Voldemort trader that began this media circus was a JPMorgan trader based in London. He is a derivatives expert, and placed bets that corporate debt was becoming less of a risk under the false supposition that corporations are becoming financially stronger. Based on a lie, this trader would benefit from any movement on the index. The result was a substantial loss for JPMorgan.

Dimon says that new rules requiring banking firms to retain more capital in reserve would put a “nail in our coffin of big American banks”. Dimon is referring to the practice of banks to lend out 90% of their actual cash stores. If they were regulated to lend what they actually have, the banking system would fail. Dimon is cleverly trying to blame regulators and not standard banking practices for future monetary losses.

Restricting and imposing a new stringent regulation on banking is what Dimon want to avoid by downplaying the financial loss. The fact that Dimon is trying to classify this instance as an “out-of-the-blue mistake” shows that when bankers misappropriate funds in a scheme to commit fraud, the public should pay attention.

Susanne Posel is the Chief Editor of Occupy Corporatism. Our alternative news site is dedicated to reporting the news as it actually happens; not as it is spun by the corporately funded mainstream media. You can find us on our Facebook page .

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