Jamie’s Cryin – Episode 3: Wherein Jamie Loses the Debit Swipe Battle & is Forced to Take Bernanke to Task for Raising Capital Requirements from the Floor of a Finance Summit

Update: I want to add that IMO Jamie is the best Bank CEO out there. He is brilliant. He is savvy, he is kewt, he is a capitalist, I dig it. I wanted him for Treasury Secretary and wrote about it in March of ’09. But the TBTF have refused to allow the consumer to deleverage from the crushing weight of their housing debt, and the TBTF helped create this problem.

They are the whiz kids in the room, Mom and Pop Homeowner need a HOLC, and the TBTF blocked it and continue to block it, assuring us a long, slow, slog through a Depression like forced deleveraging as the Fed continues to try to inflate its way out of this massive debt it used to prop the very same TBTF.

All unnecessary pain, if only the TBTF would take some of the responsibility they like to lecture about when they laughingly call principal writedowns moral harazrd after they made the Goddamned loans. (see Meredith Whitney ask Jamie about this on an earnings call in January 2010)

Lost juice Jamie? Have you Lost Hand? Did you think buying the POTUSship for Obama meant a free reign?

Did you think basing all our policies on what is best for a handful of TBTF bankstas was really a good way to GROW the American economy?

Oh woe is me. Cry me a river.

Vodpod videos no longer available.

PragmaticCapitalism has it:

(…) his bank was saved from the brink of disaster in 2008. The US government took extraordinary measures to ensure that he did not go down as one of the greatest bank failures of all-time. In fact, the US government did him a huge favor by making his bank the linchpin in the US economy.

Of course, this was done by making Mr. Dimon’s already too big to fail bank too bigger to fail. But none of this is enough. Saving someone’s career and ensuring that their bank is now an instrumental portion of the US economy is not enough. And in a fit of rage Mr. Dimon went and rewarded himself with a monstrous $16MM pay package last year. After all, he deserved it. But this is not enough.

It’s not enough to pay yourself outrageous sums of money when your company should be in a hole in the ground. It’s not enough to have the government by the throat and know that the taxpayers can never let your company fail. It’s not enough to have been a key player in helping the US banking system become the gigantic leach on the world’s largest economy. It’s not enough that you help pull our best and brightest minds out of productive fields and into finance where they will do nothing but think of new ways to help separate the middle class from their savings. It’s not enough that you helped build a banking system that nearly crashed a $15 trillion economy.

No none of this is enough. And when we pass an incredibly weak regulatory bill that does nothing to actually fix what caused the crisis you go and complain that the government is doing too much….

Vodpod videos no longer available.

Then today REALLY SUCKED for Jamie when he lost the Debit Card Swipe Fee battle to the retailers despite INSANE LOBBYING and Jon Tester- D-MT, Bob Corker R-TN last minute attempt to stave off the changes for a year.

This is a Fed set cap on swipe fees. Lowering avg fee charged to RETAILERS from .44 a swipe to .12 a swipe. TBTF are babied left and right, the retailers are going out of business left and right let the Fed baby someone else for a change Jamie. I’m sure Obama will give you another bailout any second now anyway.

WSJ:

…The fee cut could cost the card industry and banks billions of dollars, but nobody in the retail business is shedding any tears — it will save them money.

Bank stocks, up earlier in the day, flipped into the red on the news and ended down nearly 1%, making them among the worst performers in the market today….

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June 8, 2011. Tags: , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Too Big to Fail Bankstas and the Financial Collapse: Bethany McLean, author of ‘All the Devil’s are Here” CSPAN Interview

cannot wait to read this book

Courtesy of CSPAN

Reminder: IT IS HAPPENING AGAIN RIGHT NOW, REGULATORS ARE IGNORING THE FORECLOSURE FRAUD AND FAILURE OF TBTF TO DELIVER THE NOTES TO THE TRUSTEE, THE MBS ARE PUTBACKS WAITING TO HAPPEN.

For more on the imminent collapse and why, see Naked Capitalism, Yves Smith today- ‘Why MERS needs to be taken out and shot’

the idea of passing a Federal statue to solve MERS’ growing state-level problems is a huge stretch. As the latest report of the Congressional Oversight Panel noted,

In the absence of more guidance from state courts, it is difficult to ascertain the impact of the use of MERS on the foreclosure process. The uncertainty is compounded by the fact that the issue is rooted in state law and lies in the hands of 50 states judges and legislatures.

We’ve been told that Constitutional scholars have said that repeated Supreme Court decisions have found real estate transactions to be beyond the reach of Commerce clause, and hence not subject to Federal intervention. So the idea that MERS can be legitimated by Congress appears far-fetched.

But what are the problems with MERS? The focus so far has been on its questionable legal standing, but its operational failings are every bit as serious.

Although critics have provided a number of arguments against MERS, the most fundamental relate to MERS’ claim that it acts as mortgagee of record….

And see NC again for Tom Adams on why failure to transfer notes is a serious problem for the TBTF:

(…) Based on my review, Countrywide failed to comply with the terms of the agreement for the delivery of the mortgage notes. In addition, importantly, the trustee also failed to comply with the terms – it was required to certify it had the mortgage notes at closing and then certified annually that it had safeguarded the mortgage loan documents as required by the PSA.As a result, if Countrywide actually failed to deliver all of the mortgage notes to the trustee, as the judge describes in the Kemp case, then

(1) This is a problem for the trustee proving it has standing for foreclosures or bankruptcies, as in the Kemp case,

(2) It seems like investors in the certificates issued by CWABS 2006-8 would have a good case to pursue claims against both Countrywide and the Bank of New York, as trustee, for failing to perform as required under the agreement,

(3) By stating that the notes had been delivered and certifying all of the notes had been received, Countrywide and the trustee seem to have misrepresented the transaction to investors, by creating the impression that the trust had secured the collateral, and

(4) The trustee’s annual certification under Reg AB that the mortgage loan documents were safeguarded and secured may open the parties up to additional liability for misrepresentation to investors, despite the fact that three-year statute of limitations may have expired for misrepresentations made in the offering statement for the transaction.

I tracked down the pooling and servicing agreement in the Kemp case from CWABS 2006-8 to make sure it did not have any unique exceptions to delivery. It did not. Section 2.01 of the PSA requires the Depositor (CWABS) delivery of the note to the trustee with all intervening endorsements as follows:…read it all!

November 22, 2010. Tags: , , , , , , , , , , , , , , , , . Economy, Education, Finance, Foreclosures, Housing, journalism, media, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

HOUSING UPDATE – Financial Services Cmte asking for your experiences with JPMorgan Chase ahead of hearing tomorrow…

Update: There is another hearing tomorrow, see today’s hearing here:

April 13th from prepared testimony reads more like a PR show by the banks.
April 14th will be the regulators the National Law Center and those pro HAMP vs The Bankers Assoc and others

Both will be broadcast live

More info:
Barriers to Principal Reduction
April 13: House Financial Services Committee

The Recently Announced Revisions to HAMP
April 14: House Financial Services Committee

RE: Congressional Hearing in Washington DC, Tuesday 4/13/10, 10am with the Financial Committee.

MiM has been covering the many moods of the HAMP program since its inception.

Okay peeps, if you have a HAMP experience you would like to relate to the House Fin Svcs Cmte ahead of the hearing tomorrow on HAMP and servicers please contact as follows with your experience:

From loansafe.org Chase HAMP thread:

Just had a phone call from Brendan Woodbury – who is also handling tomorrow’s House Financial Services Committee hearing

He said for me to asap FAX over all I have – I asked him if it would be ok to have others do the same – he said by all means.

brendan.woodbury@mail.house.gov

FAX ASAP what you have gone through to
Congressman Barney Frank
MARK URGENT – PERTAINS TO FINANCIAL MEETING 4/13/10
FAX to (202) 225-0182

The head of mortgage lending for JP Morgan Chase David Lowman entered testimony suggesting a Quick turn around and assistance for any homeowner trying to stay in their home.

More info here including David Lowman’s prepared testimony (click on the link to his name).
House Financial Services Committee

Any HAMP applicant, after either introducing you to their friend..RALPH!,  or laughing deliriously in response, will happily hand over evidence of, in most cases, 15+ months of fruitless attempts to work with the servicers on HAMP.

HAMP is all voluntary. HAMP to date, is extend and pretend to keep homes off the market until the deluded banks think prices will come back. Forecasts suggest 15 YEARS before prices are back in sand states.

Today the big servicers are opposing the principal writedown approach Treasury is finally coming around to.

In written testimony prepared for a hearing in Washington Tuesday of the House Financial Services Committee, some of the nation’s top mortgage lenders warned of the risks of relying heavily on forgiving principal as a means of averting foreclosures and argued for concentrating mainly on other methods, such as reducing interest rates….

These banks forget TARP, its entire purpose as written was to buy bad home loans and relieve the foreclosure crisis that led to the financial collapse. Instead they got a free ride, FED continues to give them free money, they have rates so low savers are punished, they continue to devalue our dollar so we have less purchasing power, and they won’t fix the damn housing issue which is back with a vengeance.

If they will not work out the loans to resolve the issue, then the House needs to go ahead and do the cram down bill instead, which we have been opposed to until now. The banks need to share the economic pain they brought upon us all.

If we had LET THEM FAIL, they would’ve done write downs themselves to keep afloat. Our interference with TARP let them avoid the principal writedowns to begin with.

One more time – FAN FRED FHA back all these loans anyway, the TAXPAYERS are ALREADY on the hook. Not working through mods quickly with writedowns means walkaways continue apace. They are accelerating and the recent FAN home attitudes survey showed fully 15% of those surveyed agreed it was ok to walk away if facing financial difficulty making payments.

…When asked if financial distress makes stopping payments on an underwater mortgage acceptable, 15 percent of respondents said yes in Fannie Mae’s National Housing Survey, a remarkable level of public acceptance for homeowners who walk away from their mortgages in light of the growing number of defaults in Fannie Mae’s portfolio.

Both delinquent mortgage borrowers and those current on their mortgage payments are more than twice as likely to have seriously considered stopping their payments if they know someone who has already defaulted, according to the survey released today.

Underwater borrowers were more than twice as likely to be behind on their mortgage payments and were more than twice as likely to believe stopping payments was acceptable than borrowers who were not underwater. Only 33 percent of respondents cited their moral qualms as a factor motivating them to pay their mortgage…

Even conservatives are FINALLY accepting HOLC (HomeOwnersLoanCorporation like in Depression)- CATO INSTITUTE!

…The omission of recourse has been a major flaw of the Obama loan modification plans. If the taxpayer is putting something on the table, then borrowers should be expected to do the same. During the Great Depression, FDR recognized as much.

The primary New Deal vehicle for addressing foreclosures was the Home Owners Loan Corporation. The HOLC required recourse and practiced it. In fact, approximately a third of HOLC revenues were from deficiency judgments against delinquent borrowers, including wage garnishment. Perhaps there are some parallels to today, as the HOLC found the second most common reason for foreclosure to be “obstinate refusal to pay.”

FDR recognized that many delinquent borrowers could afford neither their mortgage nor a deficiency judgment; we must recognize the same today. Recourse is not a cure to stop every foreclosure. It is, however, a proven method for reducing some foreclosures…

and now admit it would have been better in 08. Gee who said that? Hillary that’s wh0.

…First, we must address the skyrocketing rates of mortgage defaults and foreclosures that have buffeted the economy and ignited the credit crisis. Two million homeowners carry mortgages worth more than their homes. They hold $3 trillion in mortgage debt. Nearly three million adjustable-rate mortgages are scheduled for a rate increase in the next two years. Another wave of foreclosures looms.I’ve proposed a new Home Owners’ Loan Corporation (HOLC), to launch a national effort to help homeowners refinance their mortgages. The original HOLC, launched in 1933, bought mortgages from failed banks and modified the terms so families could make affordable payments while keeping their homes. The original HOLC returned a profit to the Treasury and saved one million homes. We can save roughly three times that many today. We should also put in place a temporary moratorium on foreclosures and freeze rate hikes in adjustable-rate mortgages. We’ve got to stem the tide of failing mortgages and give the markets time to recover.

(more…)

April 12, 2010. Tags: , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Jamie’s Cryin’..again: Another Obama backer complains about Obama policies…

Are we officially sick of these idjits who backed Obama cryin about his policies yet? Cause it’s getting real old, real fast…Jamie’s cryin again..shoulda backed Hillary…at least I get to listen to a good tune whenever Dimon starts whining about Obama bank policy.

Read Jamie’s letter to shareholders this quarter here

Jamie got another big profile in the WSJ on his complaints about Obama, notice the title of the piece, Mr Dimon Goes to Washington, as if he is a man of the people fighting for us. Uhhh Jamie the narrative was written by your choice Obama, live with it:

…But when White House Chief of Staff Rahm Emanuel called a top J.P. Morgan executive to ask for the bank’s support in creating a new consumer-protection agency, the executive—former Commerce Secretary William Daley—said no, according to people familiar with the conversation. His boss believed that sufficient consumer safeguards were already on the books.

At a recent White House lunch with President Barack Obama and a handful of other executives, Mr. Dimon, 54 years old, complained to the president that the administration’s anti-bank rhetoric “isn’t helpful,” because it demoralizes businesses and employees, according to a person familiar with his comments.

Mr. Dimon’s disdain for the process has been crescendoing for some time. Last spring, he showed his irritation over the Treasury’s requirement that banks raise fresh funds before they quit TARP. Speaking at a June hospitality industry conference in New York, Mr. Dimon read aloud a fictitious letter to Treasury Secretary Timothy Geithner. “Dear Timmy, we are happy to be able to pay back the $25 billion you lent us. We hope you enjoyed the experience as much as we did.”…

Ouch!! Jamie was one of our picks for Tres Sec before it was fashionable…you know that dig hurt Timmeh…WSJ cannot seem to decide if it is pro Jamie here, they note his newly redesigned office like they were the NYT doing a hit piece on John Thain at Merrill…

…In a recent interview on the 48th floor of J.P. Morgan’s newly redone minimalist Park Avenue headquarters, Mr. Dimon showed little sign of backing down. “The incessant broad-based vilification of the banking industry isn’t fair and it is damaging,” Mr. Dimon said. “Punishing whole industries, whether you were reckless or not, just isn’t the way to do things.”

A number of political insiders say they’ve grown weary of Mr. Dimon’s protestations, viewing him as just another elite New York banker out to protect his turf. Some note that the bank profited handsomely during the financial crisis, when it scooped up securities firm Bear Stearns Cos. Inc. and Washington Mutual Inc.’s failed banking operations at bargain prices.

Rep. Brad Sherman, a California Democrat and senior member of the House Financial Services Committee, said J.P. Morgan benefits from its “ability to create awe and fear and a belief that the world will end if they are not pampered.”…

lol, tsk, tsk Jamie what did you expect?? seriously?? crony capitalism not feelin good when you arent the crony?

…Mr. Dimon has said he is trying to be constructive in dealing with Washington, hoping that his feedback can help lawmakers. And he isn’t fighting all of their proposals. He agrees, for instance, with the notion that banks shouldn’t be considered too big to fail and supports the idea that regulators should have the ability to wind down a failing institution. People close to Mr. Dimon say that he still supports the Obama administration, but has felt blindsided by some aspects of the overhaul…

…But Mr. Dimon’s patience with Washington soon wore thin as political leaders tried to force banks that had taken TARP funds to lend more and slash executive compensation. He was particularly rankled by a new rule putting visa restrictions on TARP recipients who wanted to hire skilled foreign workers.

Although the curbs didn’t affect many J.P. Morgan employees, Mr. Dimon was infuriated, telling his colleagues the move was “un-American,” say people who heard his remarks. On a conference call to discuss the bank’s earnings, Mr. Dimon referred to the TARP program as a “scarlet letter.”

Let’s all agree Marcy Captur D-OH is an idiot, cuz, ya know she is (anyone else remember the hearing when she accused Ben Bernanke of working for Golden Slacks, lol, she had confused him with Paulson pfft!), but the point is Team O isnt protecting the banks like he no doubt promised them he would, wink, wink, nudge, nudge…

In April 2009, Ohio Democrat Rep. Marcy Kaptur confronted Mr. Dimon at dinner at a Washington hotel with other lawmakers. “I have just come from my district and our Realtors told us this morning your company was absolutely the worst to deal with in terms of the foreclosure crisis,” Ms. Kaptur recalls saying to the CEO. “He looked at me, straight in the eye, and said, ‘That can’t possibly be true.’ ”

She rattled off all the people in her district who were losing their homes. Mr. Dimon replied that J.P. Morgan employed 20,000 people in her state, and that he often spoke with the governor and the mayor of Columbus, Ohio, where the bank has extensive call-center and data-processing operations….

Jamie’s feelings are hurt!@ Oh Noes!

…Mr. Dimon acknowledges that jousting with officials—especially during a heated regulatory climate—is simply a part of conducting business. But addressing a room full of J.P. Morgan investors recently, he said of the bankers’ taint: “It hurts your feelings a little bit.”…

Fools.

April 7, 2010. Tags: , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Wall St. Comments off.

Obama throws the Tall Man under the bus…

As any Gen X-er can tell you, you gotta be really careful with the Tall Man…he comes back….

Volcker is back under the bus (for now). As we  noted here last November, Jamie Dimon among others killed the return of Glass Steagall once already (and I am in no position to challenge Jamie’s call on this, the CDS issue is much more problematic IMO, THAT is where they take the proprietary info and make bets against their clients IMO)…

After the EPIC FAIL in Massachusetts, Obama dragged Volcker out of the closet they were keeping him in and tried to look ‘tough’ on bankstas….that is of course short lived since Jamie and Blankfein funded Obama’s campaign….now the WH has rolled over and showed its belly to the bankstas for some more scratches….hard to have sympathy for Volcker, he is one of the fools who backed Obama early and made him look moderate as a result.

Charlie Gasparino has it at DailyBeast:

Barack Obama owes Paul Volcker a lot, but he apparently owes the fat cats on Wall Street even more. That’s the only reasonable conclusion that can be made from the president’s timely and, in some ways, bizarre about-face on the former Fed chairman’s plans to reform the financial industry and prevent another meltdown.

As first reported by the New York Post, Volcker’s bank-reform idea—the one trotted out by the president with Volcker standing at his side just hours after Republican Scott Brown won Teddy Kennedy’s seat and vowed to help crush Obama’s economic agenda—has been nixed in favor of a watered-down version that bank chiefs like J.P. Morgan CEO Jamie Dimon and other Obama supporters on Wall Street are advocating.

…Sources tell me a coalition of Wall Street heavyweights from Dimon to people like Larry Fink, the head of money-management powerhouse BlackRock—Obama supporters all—made their opposition to the plan well-known to the administration. The message was clear: Wall Street, which helped elect Barack Obama with an unprecedented support for a Democratic presidential candidate (Goldman Sachs was the second largest contributor to the president’s campaign), was ready to start backing the opposition of the so-called Volcker Rule….

(more…)

February 26, 2010. Tags: , , , , , , , , , , , . Finance, Obama Administration, Politics, Popular Culture, Wall St. 5 comments.

Meredith Whitney & Jamie Dimon on principal forbearance in the JPMorgan Chase earnings call PLUS Are JPMC, BofA, Citi taking kickbacks for second liens on short sales?! & HAMP/MHA assisted a whopping 7% of those eligible last year..

Update:  Short Sale Kickback video added

Vodpod videos no longer available.

In other great news, Diana Olick is breaking a HUGE story now on CNBC that the big servicers, JPMorgan Chase, Bank of America and Citi have demanded off-HUD, off ClosingStmt payments to release second liens they hold in short sales (against RESPA law).

Treasury told Diana they were unaware of this and will look into it. Good grief. and they wonder why the servicers dont want to do mods? THEY ARE GETTING KICKBACKS ON SHORT SALES! Plus they get an INCENTIVE PAYMENT to do short sales from Treasury (we the taxpayers) now. My Lord this is unreal.

Again this is the fault of the WH and Treasury.  Treasury actually RAISED the cap on the ‘incentive fees’ the servicers can earn by doing their damn job as servicers today to 35 billion. Banks will do exactly what they can and no more. Sheila Bair at FDIC is the only one moving on principal forbearance, as usual she is ahead of the curve.

Plus the AP isn’t buying the BS spin anymore in its reporting of the much vaunted numbers Treasury is spinning today on their newly permanent mods (which they told the servicers to waive documentation for to achieve, the only thing the trial mods can be disqualified for now is ‘property’ disqualification, nice eh?):

The Obama administration’s mortgage relief plan provided help to only 7 percent of borrowers who signed up last year, another black mark for the struggling program.

Ouch that’ll leave a mark.

About 900,000 borrowers have enrolled in the $75 billion program since it launched in March, the Treasury Department said Friday. But as of last month, only about 66,500 homeowners had received permanent relief. Another 46,000 have been approved and should be finalized soon.The plan aims to make borrowers’ mortgages more affordable by reducing the mortgage interest rate to as low as 2 percent. They receive temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete necessary paperwork, including proof of income and a letter explaining the reason for their financial hardship.

The Treasury Department is pressing the 102 mortgage companies that are participating in the program to do a better job….

This is a great back and forth. I think we can confirm Treasury is doing exactly JACK SHXT about meaningful mods after hearing this discussion, so much for Obama being tough on those fat cats:

CalculatedRisk:

Here is an exchange between Meredith Whitney and Jamie Dimon on the JPMorgan conference call this morning (ht Brian):

Whitney: [W]e’re reaching a critical point in terms of all of the loan modification efforts and this is an industry question but then how it specifically affects your Company, given the fact that the industry feedback and statistics on the loan modification efforts are not good, so you question what’s the next initiative and the issue of principal forbearance. How much momentum do you think that has, can you comment on what stage we are in terms of obviously the extension ends [soon] with the last slug is over in February, so where do you think we are in terms of the government’s efforts to influence banks to do certain things?

Dimon: Well remember we do modifications of our own and we do the government modifications and I do think they’re kind of new, it was complex, and I think people will get better at it over time, Meredith. We have not thought of a better way to do it than loan by loan, which is does the person want to live there, can they afford to live there, and we really think that the payment, how much you’re paying is more important than principal. Even if you are going to do something on principal, to do it right you have to do it loan by loan and it effectively comes a similar kind of thing. The difficulty is the loan by loan part and we’ve asked the government and I think they tried to streamline a little bit to have programs because there’s too much paperwork involved in it so a lot of the reasons we’re not getting to final modifications half the time we don’t finish the paperwork, so they need the lower payments but they weren’t finishing the paperwork so we’re trying to get better at it, honestly, we rack our brains to figure out if there’s a better way to do it and you can do it more macro than loan by loan but once you start talking about macro, you’re going to get involved in a lot of issues about whether the people live there, whether they have the ability to pay, whether they were honest when they first told people how much their incomes were, so we’re working through it.

Whitney: Okay, do you get a sense that there’s something right behind HAMP, that there’s another solution for the government or is it more your efforts?

Dimon: We’re trying to do this, look, we’re trying to have ideas and they are trying to have ideas but if we had a brilliant one we would be very supportive of doing it. We want to do the right thing for the people.

Whitney: Okay, so a point of clarification on your answer, issue of principal forbearance is not something that people should be overly concerned about with respect to reserves and capital for the bank?

Dimon: No, I think if there’s a macro government force on something like that you could have a fairly significant effect on loan loss reserves and losses, etc.

Whitney: But is that a real, any momentum?

Dimon: Honestly Meredith you probably know as well as we do.

Whitney: I don’t know. I can’t help myself on that one.

Neither can we!

January 15, 2010. Tags: , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Kabuki on the Hill: Bank CEOs testify to ‘Financial Crisis Commission’ 9:00am EST

Update 3: 12:13pm: Angelides asking Blankfein what his responsibility was to the investor on those loans they securitized and sold, Blankfein is claiming they were sophisticated investors who sought that exposure. Basically, they deserved it? I dunno. Angelidies got an Agatha Christie analogy in, I always love those. He said maybe it is like Murder on the Orient Express and everyone did it, but still, how much responsibility is yours ….was your due diligence adequate? Blankfein trying to wiggle around it….good luck Lloyd…under oath, liability lawyers hanging on their chairs now….Phil says GS was doing more, they were also facilitating the market in which the products existed, Lloyd agrees to that extent they made that market…

Update 2: 10:07am: Phil Angelides questioning of Lloyd Blankfein was great. Lloyd keeps saying as a ;market-maker’ it is perfectly fine for GS to sell MBS derivatives to clients while simultaneously closing GS OWN position in those assets due to risk..Phil doesnt buy it.

BILL THOMAS! Vice Chair of the Commission just offered the American people his email if they want to submit a question to any of these CEOS!! Well I do!

billthomas@fcic.gov or some derivative thereof…send in your questions!

I really liked Moynihan’s opening statement, he is grateful to the American people, Blankfein needs to eat some of the humble pie Brian had before he arrived. (FD-MiM are BofA shareholders and are keenly interested in how Brian does today, his first big appearance since taking reins as BofA CEO)

Update 1: 9:07 am EST: WOW!! They put them under oath!! first time I have seen these bank CEOs be put under oath (except Ken Lewis on the BofA Merrill witchtrials)

CNBC should carry a livestream of the testimony here when it begins later today NOW LIVE (9:00 am EST, just began opening statements)

(more…)

January 13, 2010. Tags: , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Wall St. 2 comments.

Jamie’s Cryin’: Dimon says he’s tired of complaints about banker pay and bonuses

Vodpod videos no longer available.

Another day, another classic VH tune fits the lede, Jamie Dimon is pushing back against the ‘rising populist tide’ in re banker bonuses and pay. If you have been here before, you know we are big fans of Jamie and wanted him for Treasury Secretary. We like that he is a fighter.

But we also know the banking industry and Wall St selected obama as their candidate for a reason, and since it is Obama ginning up the faux populism and then slamming we Tea Party Patriots for being concerned about Government spending, well, Jamie needs to talk to the WH, not the people, WE are not the problem…..

Jamie Dimon defended the bank’s pay policies on Monday and said he was “tired” of his employees being vilified over bonuses.

Rising bonuses have drawn criticism from politicians and others, who complain Wall Street’s losses seem to be socialized while its profits are privatized.

Dimon, along with the chief executives of Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and other big banks, will be appearing this week before a commission created by Congress to look into causes of the financial meltdown.

JP Morgan pays its employees for sustained performance over multiple years, Dimon said on Monday.

“We do not have change-of-control agreements, special executive retirement plans, golden parachutes, special severance packages or merger bonuses,” he told a JP Morgan healthcare conference, adding that many of company’s employees are in client-facing jobs and work hard with small and mid-size businesses.

“I am a little tired of the constant vilification of these people,” he said….

PS Jamie says Commercial R.E. is a ‘train wreck’ but we knew that was coming…..

more about “Jamie’s Cryin’: Dimon says he’s tired…“, posted with vodpod

January 12, 2010. Tags: , , , , , . Economy, Finance, Politics, Popular Culture, Unemployment Statistics, Wall St. Comments off.

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