Thursday, 14 February, 2013
Is it just me that is absolutely gobsmacked by this!?
Further evidence, of the lack of consistency and glaring inequalities. OK, we know that Regulators and Legislators see fit to ignore the scale of the crimes perpetrated by these banksters BUT for how much longer can any right-minded citizen stand idly by?
More (costly) regulation won’t change this culture but, CONSTRUCTIVE TRANSPARENCY can. And, in the process, reduce the risks associated with such behaviours.
Political and Financial leaders know that they are playing a very high stakes game and that there is a growing threat that ALL that they hold dear will, as a result of both their actions and inaction, come under threat. Would this go some way to explain the rate at which civil liberties are being stripped away across the Western world? I sincerely hope that such questions or suggestions don’t qualify me as a “domestic terrorist” because, as a mere citizen, anything could happen…
JPMorgan Chase has been sanctioned by US regulators for failures in its risk management operations after it lost more than $6.2 billion on a single credit derivatives trade. The sanctions follow the disclosure of significant losses in a large synthetic credit portfolio that was managed by the CIO. The botched bet – made by UK big fish Bruno Iksil – had managed to wipe out $51 billion in shareholder value before alarm bells started to ring at the bank’s head office in New York. Among other things, the Fed identified deficiencies in risk management oversight, modelling assumptions, audit and finance reporting and escalation to senior management. The OCC further found that the bank’s BSA (bank Secrecy Act) compliance programme had “critical deficiencies” with respect to suspicious activity reporting, monitoring transactions, conducting customer due diligence and risk assessment, and implementing adequate systems of internal controls and independent testing. Despite the criticism, JPMorgan Chase escaped with nothing more than a rap on the knuckles. No fines were levied by the watchdogs and the bank didn’t admit or deny wrongdoing in consenting to the regulatory orders