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Covert writes: "On Wednesday, JP Morgan CEO Jamie Dimon said of Massachusetts Senator Elizabeth Warren (D), 'I don't know if she fully understands the global banking system.' By Thursday, Warren already had a response."

JP Morgan Chase CEO Jamie Dimon testifies at House Financial Services hearing. (photo: Chip Somodevilla/Getty)
JP Morgan Chase CEO Jamie Dimon testifies at House Financial Services hearing. (photo: Chip Somodevilla/Getty)


'Elizabeth Warren Doesn't Understand Wall Street,' Says CEO Whose Bank Got Bailed Out

By Bryce Covert, ThinkProgress

13 June 15

 

n Wednesday, JP Morgan CEO Jamie Dimon said of Massachusetts Senator Elizabeth Warren (D), “I don’t know if she fully understands the global banking system.”

By Thursday, Warren already had a response. Speaking on the Huffington Post’s “So, That Happened” podcast, she said, “The problem is not that I don’t understand the global banking system. The problem for these guys is that I fully understand the system and I understand how they make their money. And that’s what they don’t like about me.”

Warren’s résumé comes with nearly 20 years of experience teaching corporate law at Harvard University, publishing nine books, chairing the Congressional Oversight Panel that oversaw the bank bailouts in 2008 (of which JP Morgan was a beneficiary), and coming up with the idea for and helping to create the Consumer Financial Protection Bureau, which has already helped consumers avoid numerous predatory lending schemes and recouped more than $4.8 billion through its enforcement actions.

She has also become widely known for her tough critiques of the banking industry. She has questioned why the government didn’t break up the biggest banks, like JP Morgan, when it offered bailout money in 2008 and joined a group of Senators in 2013 to propose reinstating a Depression-era rule that separated commercial and investment banking. She’s been a staunch supporter of the 2010 Dodd-Frank financial reform bill and stood in opposition to Republicans’ attempts to roll parts of it back.

She’s long criticized regulators’ reluctance to go after the biggest banks for their misconduct. She questioned the Securities and Exchange Commission, Justice Department, and Federal Reserve on the lack of prosecutions for banks’ misdeeds that led up to the financial crisis, saying, “If large financial institutions can break the law and accumulate millions in profits and, if they get caught, settle by paying out of those profits, they do not have much incentive to follow the law.” She proposed a bill that would have made settlements between banks and these regulators more transparent in an effort to tamp down on the government’s exaggerations. Just last week, she sent a letter to the SEC chairman voicing her disappointment in the agency’s failure to enforce existing rules governing the financial industry and its slow pace in writing new rules as mandated by Dodd-Frank.

And she’s also stuck it to JP Morgan itself. In 2013, the bank announced that one of its traders in London, who came to be known as the “London Whale,” had made a series of bad bets that ended up costing the bank $6 billion. The bank was eventually made to pay $900 million in fines and “admit its traders acted recklessly” when it was found the trades violated rules against banks making such bets with their own capital and against market manipulation.

As the episode unfurled, Warren said it made the case for a return to “boring banking” and the institution of the Volcker Rule, which would separate investment and commercial banking, in order to alleviate the risk such trades pose to the industry as a whole.

Dimon’s remarks aren’t the first time businessmen have doubted her. In March, Berkshire Hathaway CEO Warren Buffett said she is too “angry” and “violent” in her critiques of Wall Street. Banks have also been fighting viciously against her, threatening to withhold campaign donations to all Senate Democrats to protest her. JP Morgan told Democrats that donations hinged on a friendlier atmosphere for banks.

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+79 # tswhiskers 2015-06-13 08:53
It sounds to me that, contrary to Jamie Dimon's complaint, Liz understands Wall St. all too well. In spite of fines and bad publicity, the big banks have gotten richer and have gone back to their old financial tricks as well. Wallis Simpson's statement that you can't be too rich or too thin is too true. You can't EVER have too many billions, whether you're a bank or an individual. AS for Buffett's implication that Wall St. needs to be treated with kid gloves, if Warren IS playing with the Big Boys, then the Big Boys ought to be able to take honest criticism from one "mere" woman Or maybe she's "bigger" than she seems. Happy thought.
 
 
+63 # cmp 2015-06-13 09:20
JP Morgan, lived from 1837-1913. He has been dead for 102 years. .. So, just how is it that his monopoly lives on in perpetuity and, with obscene profits that crushes any competition?

I have an opinion too. .. And that is "Kings ruling forever, is un - American."

Move to Amend:
~ "Artificial Entities Such as Corporations Do Not Have Constitutional Rights" ~
.. and..
~ "Money is Not Free Speech" ~
 
 
+9 # bullslam 2015-06-13 17:15
Immortality is built into the whole concept and structure of the corporation. In addition to guarantees of protection of the executive board from personal debt and bankruptcy Society granted these little embellishments and permissions way back when Jefferson was fighting the banks off. Society now should be rising up to take back those gifts. Immortality is one of the society granted gifts which ought to be struck out of the compact between society and corporations. I would like to see corporations put out of business after 50 years or a billion dollars -- whichever happens first.
 
 
+4 # cmp 2015-06-14 07:30
Exactly! This man made Frankenstein should never have had the power to replace the fundamental right "That all men are created equal." Either we focus on changing the rules of the game or we will just continue to have our hearts broke every time.
 
 
+5 # bingers 2015-06-14 15:57
We should go back to founding fathers days when a corporation had to shut down upon the death of its founder.
 
 
+3 # A_Har 2015-06-14 19:41
Quoting bingers:
We should go back to founding fathers days when a corporation had to shut down upon the death of its founder.

Yes, it was very different in the past. Here is more info on it:

Our Hidden History of Corporations in the United States
http://reclaimdemocracy.org/corporate-accountability-history-corporations-us/

"Initially, the privilege of incorporation was granted selectively to enable activities that benefited the public, such as construction of roads or canals. Enabling shareholders to profit was seen as a means to that end. The states also imposed conditions (some of which remain on the books, though unused) like these*:

Corporate charters (licenses to exist) were granted for a limited time and could be revoked promptly for violating laws.
Corporations could engage only in activities necessary to fulfill their chartered purpose.
Corporations could not own stock in other corporations nor own any property that was not essential to fulfilling their chartered purpose.
Corporations were often terminated if they exceeded their authority or caused public harm.
Owners and managers were responsible for criminal acts committed on the job.
Corporations could not make any political or charitable contributions nor spend money to influence law-making."

Useful article.
 
 
+1 # munza1 2015-06-14 23:54
Aren't banks individuals actually as they are corporations. Individuals die sadly so hey you're right given them a normal life span say 50 years.
 
 
-80 # Charles3000 2015-06-13 10:34
Unfortunately, Jamie Dimon is correct. Elizabeth has quoted Dimon in her book where he told her that banks must have cycles of booms and busts. He didn't use those words; he said "cycles" but that is what was obviously meant. Elizabeth does not believe him. She believes regulation will prevent cycles but I can assure you Dimon knows what he is talking about in this case. The real solution lies elsewhere and you can read one of several ways at RealMoneyEcon.c om. http://realmoneyecon.com/
 
 
+35 # randrjwr 2015-06-13 12:05
Quoting Charles3000:
Unfortunately, Jamie Dimon is correct. Elizabeth has quoted Dimon in her book where he told her that banks must have cycles of booms and busts. He didn't use those words; he said "cycles" but that is what was obviously meant. Elizabeth does not believe him. She believes regulation will prevent cycles but I can assure you Dimon knows what he is talking about in this case. The real solution lies elsewhere and you can read one of several ways at RealMoneyEcon.com. http://realmoneyecon.com/


I am sure that Elizabeth Warren does understand that cycles will and do occur. She ALSO understands that when the downturns happen, the losses are awarded largely to Main Street while Wall Street loses little of the obscene profits made during the upside. It is time that Wall Street either accepts regulation so that cycles are less severe or that Wall Street suffers in the downturns in proportion to how they benefited in the up-cycle. Warren understands that too and wants to correct that situation, and that, in my view, is what Wall Street doesn't like about her.
 
 
+18 # Texas Aggie 2015-06-14 08:16
It wasn't Dr. Warren's "understanding" of the banking system that brought about the crash. It wasn't Dr. Warren's "understanding" of the banking system that brought about the $6 billion loss to JP Morgan. It wasn't Dr. Warren's "understanding" of the banking system that brought about the manipulations of Libor and currency markets. It wasn't Dr. Warren's "understanding" of the banking system that got HSBC in hot water for money laundering for the cartels. All of those cases were brought about because of the way Jamie and his buddies "understood" the banking system.

The takeaway message is if there is anyone who is clueless about banking systems, it's Jamie and his Merry Gang of Miscreants.
 
 
+8 # bingers 2015-06-14 15:59
Dimon has committed so many felonies and gotten Chase fined nearly 20 billion dollars and has been such an incompetent CEO for so many years that he isn't fit to talk about someone so superior to him as Warren.
 
 
+7 # Charles3000 2015-06-13 10:38
Another less transformative approach is outlined by Ellen Brown at http://www.webofdebt.com/
 
 
+31 # Jim Young 2015-06-13 11:09
There certainly should be at least more public banking (Bank of North Dakota, postal banking like other countries), and other options to compete with the overly privatized (I think "Piratized") private banking that effectively accomplished substantial leveraged buyout of OUR real people's government.
 
 
-12 # A_Har 2015-06-13 10:56
Actually and sadly there is some truth to what he says. Wall Street OWNS the government as GOV needs to borrow money from the big banks for their daily operations so they can't exactly put them in jail for all the malfeasance we see.

The tail wags the dog.

Catherine Austin Fitts (a former banker and someone who worked in previous administrations ) has explained this rather well. She runs a site called the Solari Report: https://solari.com/blog/

And she can be found on many video presentations on YouTube.

It looks like my point of view which evolved over 10 years of studying it, is not popular here.

: /

It takes a lot of work and reading to get a grip on it.
 
 
+1 # Texas Aggie 2015-06-14 08:19
I was under the impression that the banks were borrowing from the Fed, not the other way around. Government bonds right now are paying less than inflation, so that doesn't count as "borrowing" either. It's more like the banks giving money to the government.
 
 
+4 # A_Har 2015-06-14 10:31
Quoting Texas Aggie:
I was under the impression that the banks were borrowing from the Fed, not the other way around. Government bonds right now are paying less than inflation, so that doesn't count as "borrowing" either. It's more like the banks giving money to the government.

There is nothing really FEDERAL about the Federal reserve. It is a *private bank* which became the central bank of the USA in the beginning of the 20th century. Past presidents--mos t notably Andrew Jackson--fought pitched battles over having any central bank gaining control over our economy.

For more on this read
The Creature from Jekyll Island : A Second Look at the Federal Reserve Paperback – May, 1998
http://www.amazon.com/The-Creature-Jekyll-Island-Federal/dp/0912986212

by G. Edward Griffin (Author)

We have suffered a financial Coup d'etat. That is why such malfeasance goes unpunished. The banksters changed the laws to make what they are doing LEGAL. And for the other things they do that aren't, they just get fined--a wrist slap. And, those entities can deduct the fines from their taxes as a business expense.

"Give me control of a nation's money and I care not who makes the laws."
Mayer Amschel Rothschild 1744 -1812

Here is a video of Catherine Austin Fitts on the Corbet Report telling what you can do about all this:

Shunning the Banksters - Catherine Austin Fitts on Economics 101
https://www.youtube.com/watch?v=5OdcjATdQGk
 
 
+3 # A_Har 2015-06-14 10:40
Here is an especially good article written by a UK blogger around how the bankruptcy laws in many countries have been rigged to screw over ordinary people. He cites the bankruptcy laws put in place here in 2005, but we are not the only ones the banksters have set up. It is helpful to understand what is *behind all this crap.*

Plan B – How to loot nations and their banks legally
http://www.golemxiv.co.uk/2011/12/plan-b-how-to-loot-nations-and-their-banks-legally/
 
 
0 # Jim Young 2015-06-21 07:59
Quoting A_Har:
Actually and sadly there is some truth to what he says. Wall Street OWNS the government as GOV needs to borrow money from the big banks for their daily operations so they can't exactly put them in jail for all the malfeasance we see.

The tail wags the dog.

Catherine Austin Fitts (a former banker and someone who worked in previous administrations) has explained this rather well... ...It takes a lot of work and reading to get a grip on it.


Listen to https://solari.com/blog/wp-content/plugins/mp3dl/dl.php?fdl=PublicKaptur.mp3&t0=audio for important, honest agent views on a less corrupt balance between Wall Street and the real people of this country.

I, for one, do appreciate the effort to hear from insiders that have such important views on subjects related to finance and the pending huge transfer of local, state, and even national sovereignty, to private transnational interests.

Rep. Marcy Kaptur is a critical honest agent source for this topic.
 
 
+20 # Robbee 2015-06-13 12:21
jamie dimon runs chase bank like a racket. dimon corners select resource markets, fixing prices to rob consumers, a/k/a bank customers, forcing them to pay higher prices on techno consumer goods.

he also robbed one million chase credit card customers, calling their "for the life of the loan" loans

there oughtta be a law - and there is - but he is too big to jail
 
 
+6 # itchyvet 2015-06-14 02:52
Quoting Robbee:
jamie dimon runs chase bank like a racket. dimon corners select resource markets, fixing prices to rob consumers, a/k/a bank customers, forcing them to pay higher prices on techno consumer goods.

he also robbed one million chase credit card customers, calling their "for the life of the loan" loans

there oughtta be a law - and there is - but he is too big to jail

No one is too big to goal, that's just the cow manure they want you to believe.
Iseland proved that theory is crap.
 
 
+4 # A_Har 2015-06-14 10:43
"jamie dimon runs chase bank like a racket. dimon corners select resource markets, fixing prices to rob consumers, a/k/a bank customers, forcing them to pay higher prices on techno consumer goods."

The Boss
http://www.wocka.com/231.html

When the body was first made all the parts of the body were fighting to see who would become the boss of the body. The fight for power was most intense between the limbs, the brain, and ..... the asshole.

The limbs said they should be boss because they control the human, and without them the body was useless and couldnt move or do anything.

The brain said it should be boss becauses it has to control the whole body and without the brain nothing in the body would function, neither the limbs or the asshole.

The asshole said simply, "I'm the boss."

The brain and limbs laughed at him. The asshole was so mad he closed up and the body became constipated. The brain couldnt think straight and became fuzzy, the limbs became cold, sweaty and clammy, the body was going to hell. So the brain and limbs decided the asshole was the boss.

Morale of the story is that it doesnt matter how good you are or what you do for others, only the asshole will become the person in charge.
 
 
+2 # bingers 2015-06-14 16:03
Ain't it the truth? And Dimon is a Koch quality asshole.
 
 
+22 # photonracer 2015-06-13 13:01
I suspect Mr Dimon is of the philosophy that if one tells a lie often enough and loud enough it become true enough. MS Warren is very aware of Wall Street tricks and the techniques of the banksters. Mr Dimon must keep promoting the lie to discredit his most potent enemy.
 
 
+22 # PABLO DIABLO 2015-06-13 13:19
Put a few "banksters" in prison and let's see what happens.
 
 
+17 # Dongi 2015-06-13 13:58
Yeah, let the bankers mingle with some pedophiles and homicidal maniacs and see what kind of risks they take once released. They all have "get out of jail free" cards now. God, it's like playing Monopoly with real money. Why worry, we can't get into trouble. Unless that evil and ignorant woman gets involved and mucks everything up. God forbid.
 
 
+16 # Seadog 2015-06-13 14:58
Jamie is a pig. His head deserves to be rolling around in a basket under the shadow of Dr. Guillotine.
 
 
+18 # Old4Poor 2015-06-13 16:52
Just when I thought I could not loathe Jamie Dimon more, he opens his mouth.

When I fantasize about him in an orange jumpsuit and cuffs, he is in a maximum security prison.

I do not want him dead, I want him to live with his own downfall.
 
 
+19 # gdsharpe 2015-06-13 18:02
" JP Morgan told Democrats that donations hinged on a friendlier atmosphere for banks. "
So. They now admit to bribing Senators. Is that not against the law? Should they not be prosecuted?
Warren is SPOT ON in her criticisms!
-gary
 
 
+11 # itchyvet 2015-06-14 02:50
The Icelanders have it right.
Lock up these pigs who constantly slaver at the trough. They can then tell us from their cells, how righteous they were.
 
 
+5 # Bruce Gruber 2015-06-14 14:43
Perhaps conservatives have something in the desire to return to the days of yesteryear ... when tar and feathers was an acknowledged form of 'shaming'.
 
 
+1 # bingers 2015-06-14 16:05
Quoting Bruce Gruber:
Perhaps conservatives have something in the desire to return to the days of yesteryear ... when tar and feathers was an acknowledged form of 'shaming'.


Yeah, but they would only tar and feather the honest people.
 
 
+2 # A_Har 2015-06-14 18:53
Quoting bingers:
Yeah, but they would only tar and feather the honest people.

Actually there has been a staggering run of Banker "Suicides" in the past couple of years. It is suspected that those who died had some kind of a line on the serious criminal activities of these big banks so they were literally knocked off (the tops of buildings) and of course if they were "suicides" there would be no criminal charges.

Suicide, Omen or Political Murder: 2014 Banker Death Count Reaches Double Digits
http://mysteriousuniverse.org/2014/05/suicide-omen-or-political-murder-2014-banker-death-count-reaches-double-digits/

Very very suspicious.

Our system is *corrupt beyond your wildest dreams.*
 
 
+4 # Phillybuster 2015-06-14 18:59
Re Jamie "Diamond Jim" Dimon: Not only a full-blown psychopath but a sexist pig to boot.
 
 
+1 # Auteur47 2015-06-14 21:08
I think the relevant question here is Hillary even TALKING about breaking up the megabanks or restoring Glass Steagall? She seems to be taking on a populist bent as of late in order to placate the left. But how real is all that?
 

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