Wednesday, January 01, 2014

Defining justice for large Wall Street firms

It looks as though the Justice Department will not enforce subpoenas against JPMorgan. It has been asked to do so by the Office of the Comptroller of the Currency, the Treasury Department’s Inspector General and the Trustee in charge of recovering funds for Madoff’s victims. All of the subpoenas sought documents relative to the Madoff swindle. All requests were denied by DOJ.

JP was Madoff's banker for the last 22 years of his fraud. It had to have reams of data relative to its dealings with Madoff. The Trustee argued, “Evidence of Madoff’s fraud permeated every facet of JPMC [JPMorgan Chase].  It ran from the Broker/Dealer Group, where BLMIS [Bernard L. Madoff Investment Securities LLC] maintained a bank account that no one honestly could have believed was serving any legitimate purpose, to Equity Exotics, where JPMC learned of the red flags inherent in BLMIS’s investment strategy, to JPMC’s London office, which learned that individuals might be laundering money through BLMIS feeder funds, to the Private Bank, which maintained intimate relationships with one of BLMIS’s largest customers, to Treasury & Security Services, which was responsible for investing the balance of the 703 Account in short-term securities.”

Why does DOJ refuse to order JP to turn over these documents?

1 comment:

woodpond said...

Lobbyists with huge budgets somehow reached into DOJ?