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Whoa: Madoff Trustee Says A High-Level JPM Exec Was Warned About Madoff Well In Advance
The Business Insider ^ | 2/3/2011 | Katya Wachtel

Posted on 02/03/2011 5:33:04 PM PST by FromLori

A high-level JPMorgan risk officer was warned that Bernie Madoff had “a well-known cloud” over his head and was suspected of running a Ponzi scheme nearly 18 months before he was charged, according to the FT.

The lawsuit in which it's alleged that the executive was forewarned was filed against JPMorgan by Irving Picard, the trustee responsible trying to recover as many funds as possible for Madoff. It has just been unsealed, and was filed secretly at JPMorgan’s request.

The suit aims at recovering $1 billion in fees and profits that JPMorgan earned as the primary banker to Madoff’s firm and by structuring Madoff-related derivatives. Picard also wants more than $5 billion in damages.

(Excerpt) Read more at ...

TOPICS: Business/Economy; News/Current Events
KEYWORDS: banks; bernardmadoff; berniemadoff; deeppockets; fraud; jpmorgan; lawsuit; madoff

1 posted on 02/03/2011 5:33:10 PM PST by FromLori
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To: FromLori

I think JP Morgan Chase (another scum company) pulled $4 billion out of Bernie’s scam and it was the tipping point that started the run.

As someone posted here - maybe you Lori? - Daley is a JP Morgan guy and Rahm is a Goldman Sachs guy while Buffett is a Wells Fargo guy.

They took out loads of competitors and got there businesses for free, made billions shorting them too. - Lehman, Bear, Wachovia, Indy Mac and the list goes on and on.

JP Morgan Chase - the Chase part is the Rockefellers.

2 posted on 02/03/2011 6:16:46 PM PST by Frantzie (HD TV - Total Brain-washing now in High Def. 3-D Coming soon)
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To: Frantzie

No not me but I think that was on a thread I may have posted but you don’t mean the financial collapse right?

Just wondering because I just read that we still won’t be told who supposedly pulled the $20 Billion out of BOA to start the crash.

3 posted on 02/03/2011 6:47:12 PM PST by FromLori (FromLori">)
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To: All
Madoff Trustee Says A High-Level JP Morgan Exec Was Warned About Madoff Well In Advance.......

OBAMA'S NEW WH COS: Deal-Maker Daley from JP Morgan | January 10, 2011 | Michael Barone
FR Posted on Monday, January 10, 2011 by Kaslin

"He possesses a deep understanding of how jobs are created and how to grow our economy." That's what Barack Obama said as he announced the appointment of his new chief of staff, William Daley, before a crowd of admiring White House staffers.

It's not hard to understand Obama's reasons for choosing Daley. Businesses are sitting on $1 trillion in cash and refusing to make job-creating investments. They are spooked by the Obama Democrats' vast expansion of the size and scope of government and the prospects of ever more intrusive and expensive regulations being churned out by various federal agencies every day.

Obama hopes that the fact that Daley has held high-level jobs in the private sector will assure them that their fears are unfounded.

But when you take a look at Daley's resume, what you see are positions not in job-creating departments but at the intersection between private firms and governments.

(1) Daley headed a union-owned bank.

(2) Daley was on the board of Fannie Mae.

(3) Daley was a high honcho at the telecom SBC.

(4) Most recently, Daley headed Chicago affairs for JPMorgan Chase.

JP Morgan Chase CEO, Jamie Dimon, is the most politically shrewd of the big finance chief executives. In the financial turmoil of 2008, Dimon obtained Bear Stearns for a song and Washington Mutual at a favorable price. His bank unloaded mortgage-backed securities while Citigroup loaded up on them and, unlike Bank of America, didn't get saddled with the losses of Merrill Lynch.

Daley's public-sector jobs have also been located at the intersection of government and business. In his first term, Bill Clinton hired Daley lead the lobbying for the North American Free Trade Agreement, and in his second Clinton appointed him secretary of commerce, where he also pressed for free-trade measures.

You can understand why Daley has been appointed to the boards of directors of Boeing based in Chicago (heavily dependent on exports and pro-free trade) and Abbott Laboratories (heavily dependent on intellectual property rights and government regulation). And why left-wing bloggers have been denouncing his appointment.

Actually, Daley's views and his background are not so very different from those of the first Obama chief of staff, Rahm Emanuel, who seems likely to be elected to succeed Richard M. Daley as mayor of Chicago in a few weeks.

Emanuel famously recommended an incremental approach on health care; Obama decided to follow Nancy Pelosi's advice, with policy and electoral results that are well known.

The major difference between Emanuel and Daley is one of temperament. Emanuel is fiery, profane, intense; Daley is calm, gruff, matter-of-fact. In this respect, Daley, resembles the man who was installed as speaker of the House, John Boehner. --SNIP--


REFERENCE Lehman's Bankruptcy Estate Sues J.P. Morgan
FR Posted May 26, 2010 by markomalley

Lehman's Bankruptcy Estate Sues JP Morgan Chase & Co., alleging that JP Morgan illegally siphoned billions of dollars from Lehman in the days before the investment bank filed the largest bankruptcy in US history.

The lawsuit, filed Wednesday in US Bankruptcy Court, New York, alleges that JP Morgan Chief Executive James Dimon and other top executives used inside knowledge to take advantage of Lehman as its financial state worsened.

JP Morgan coerced Lehman to turn over $8.6 billion in collateral in Sept 2008, triggering a liquidity squeeze that contributed to Lehman's collapse, the suit said. The estate is hoping to recoup billions in collateral the bank demanded, and other damages. (Excerpt) Read more at ...


JPMorgan overcharged thousands of military families, improperly foreclosed
Housing Wire | by JON PRIOR / FR Posted by DeaconBenjamin

JPMorgan Chase overcharged roughly 4,000 troops on their mortgage and improperly foreclosed on 14 of the families, a spokesperson for the bank said Mon.

Under the Servicemembers Civil Relief Act amended 2003, lenders can be required to lower mortgage rates for active-duty military personnel to 6% and cannot pursue a foreclosure, but according to the report, Chase was slow to make the change for many of the families, charging Marine Capt.

Jonathan Rowles as much as 10% and hounding him with debt collection calls for as much as $15,000 in arrears, according to NBC news. The Rowles case against Chase is still pending, but the bank said it had made the mistakes and is trying to correct the problem.

In a statement sent to HousingWire, Chase said it will be sending roughly $2 million in refunds to families that have been overcharged and will give back the homes that were improperly foreclosed.

Major servicers are under investigation from regulators and the 50 state AGs for other problems in the foreclosure process. Iowa AG Tom Miller said in a statement sent to HousingWire that Chase disclosed the overcharges to him "very recently." "I m concerned and troubled over JP Morgan Chase's disclosure," Miller said. "Our deployed men and women should focus on their deployment.

Neither they, nor their families, should have to endure this kind of financial distraction back home."In Dec, he did say a settlement compensating homeowners was one of many options on the table. "We made mistakes here and we are fixing them," a Chase spokeswoman Kristin Lemkau said. The bank said it is reviewing how it services loans to military personnel, and it has implemented a team that works only for these borrowers.

4 posted on 02/04/2011 7:08:30 AM PST by Liz
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To: CutePuppy; ken5050; stephenjohnbanker


5 posted on 02/04/2011 7:09:52 AM PST by Liz
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To: All
L/E should looks at Daley’s activities at JPMChase. The trustee ID'ing his assets found Madoff used the time-tested Wall Street MO----creating a super-secret labyrinth of interrelated international funds, institutions and financial entities of almost unparalleled complexity and breadth......with assets and businesses in multiple places overseas that hid thievery, money laundering and tax evasion.

To the astute observer, Madoff was running simultaneous scams:

(1) a tax evasion scheme for wealthy businessmen ("losing" money is a tax write-off;

(2) a money laundering scam;

(3) a protection racket for affinity groups,

(4) aiding and abetting wealthy tax-exempt foundations to evade US banking laws and the IRS.

(5) hiding money for wealthy businessmen some of which was used for campaign donations (FEC fraud), and foundation fraud (IRS fraud)

Keep in mind Bernie‘s investors were savvy, astute successful business people, accustomed to constructing, picking apart and analyzing financial statements. One investor who spoke to reporters was a stockbroker (her family invested with Bernie for generations---the family's patriarch founded the wildly successful Stop and Shop supermarket chain). Other investors gave Madoff $100-500 millions to "invest" for years and years.

MADOFF'S INVESTORS ABIDED BY THE CONDONATION LEGAL PRINCIPLE The compelling legal principle of “condonation” is operating here---implied forgiveness for certain behavior. Meaning investors implicitly “condoned” Madoff’s actions over a period of time--sometimes decades.

His investors willingly acquiesced to Madoff's activities in several ways:

(1) Sending Madoff enormous sums of money, sums that were spread out over time (some families invested for generations), even AFTER they had the opportunity to assess their investments;

(2) Referring other investors to Madoff (if the investment was so bad, why did they bring in other investors?);

(3) Taking profits out of the investment, rolling it over, or putting more money in;

(4) Writing PERSONAL checks to Madoff's subrosa spinoff vehicle that was not listed on the Securities Exchange (tax evasion modus);

(5) Accepting, without question, Madoff’s obviously flawed monthly statements.

YEAH SURE---I BELIEVE THIS (/SNIX) The SEC did not have “the slightest clue” about Madoff's financial fraud. Until Madoff confessed.

6 posted on 02/04/2011 7:22:31 AM PST by Liz
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To: FromLori

IMHO....the entire oligarchy was in on the game...and it spun off the entire derivative/securitized mortgage mess as every “cover-up/re-coup attempt snow-balled and morphed into a bigger cow pie.

7 posted on 02/04/2011 7:31:55 AM PST by mo ("If you understand, no explanation is needed; if you do not, no explanation is possible")
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To: Liz; Frantzie; All
A high-level JPMorgan risk officer was warned that Bernie Madoff had “a well-known cloud” over his head and was suspected of running a Ponzi scheme nearly 18 months before he was charged.

And...? There have been several financial / investment firms who wouldn't fall for Madoff's pitch and wouldn't do business with Bernie when he refused to show how he can achieve his "stable returns". JPMorgan was one of them, and they shut down their own small account with him, and only provided "pass-through" service for people who wanted to invest with Madoff.

Why not sue SEC and FInRA and Spitzer's office? They were specifically warned about Madoff, and SEC made several "audits" of Madoff, yet didn't discover the Ponzi scheme. Was any of the prospective

Picard has no claim for "clawback" here, let alone any money in illusory "damages". But the lawsuit will generate "shocking" headlines and he hopes that the "bad publicity" may spur JPMorgan to settle for some amount...

I doubt this one will go anywhere, but hey, lawsuits are what Picard is there to do.

8 posted on 02/04/2011 9:59:45 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: Liz

” YEAH SURE-—I BELIEVE THIS (/SNIX) The SEC did not have “the slightest clue” about Madoff’s financial fraud. Until Madoff confessed. “


9 posted on 02/05/2011 8:35:09 AM PST by stephenjohnbanker
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