The federal government cajoled JP Morgan into acquiring
Bear Stearns. Now they are punishing JP Morgan for crimes allegedly committed
by Bear Stearns prior to the acquisition. Maurice Greenberg, chairman and CEO
of C.V. Starr & Co, writes in The Wall Street Journal:
History seems to be repeating itself
with the case of J.P. Morgan. The global bank is now under siege by federal and
state regulators. The most ironic claim against J.P. Morgan is an allegation
from current New York Attorney General Eric Schneiderman of mortgage fraud at
Bear Stearns that allegedly took place prior to J.P. Morgan’s acquisition of
that firm. J.P. Morgan acquired Bear Stearns at the urging of federal officials
who feared that fallout from Bear’s collapse would damage the entire economy.
Like AIG, J.P. Morgan plays a
central role in both the U.S. and world economies. There are no more than a
handful of executives with the requisite experience, talent and intelligence to
lead that bank. Its chief executive, James Dimon, is one of those rare
individuals. By diverting his attention from his responsibilities, government
officials are hurting shareholders, pension funds, countless employees, the
City of New York, and the national and global economy—not to mention
undermining confidence in our banking system.
Those regulators have pushed
their dubious claims to the point of requiring the bank to pay over $11 billion
in fines. I hope the board of directors at J.P. Morgan will have the wisdom and
courage to support their CEO and not cave to demands from regulators that can
only harm the company and its stakeholders. That would send a strong message to
the nation’s business community and allow J.P. Morgan to continue to benefit
from Mr. Dimon’s leadership.
Whatever you think about “banksters,” this appears to be
a breach of natural justice…..To Read More….
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