JPM Pays $35 Million To Settle Bid Rigging Case

Tyler Durden's picture

America's toothless regulators strike again. JPM, which recently got away virtually scott free with an identical settlement on CDO security fraud that dragged Goldman stock for months back in 2010, has once again exposed its "most favored fraud" status with America's regulators after Reuters announced that the firm will settle a charges of a 6 year long bid-rigging fraud in municipal securities with the SEC... for the princely sum of $35 million.

"JPMorgan Chase was ordered to pay more than $35 million to settle allegations that employees participated in a bid-rigging scheme for derivatives sold to municipalities and non-profit organizations. The Office of the Comptroller of the Currency said JPMorgan employees engaged in the scheme beginning in at least 1999 though 2005, submitting false or sham courtesy bids and communicating with direct competitors to fix prices. The OCC said the enforcement action is part of a global resolution with the U.S. Department of Justice, Internal Revenue Service, Securities and Exchange Commission, Federal Reserve Board, and about 25 state attorneys general."

It would be great to discover just what the profit that JPM had generated for the 6 year period associated with this fraudulent activity was, and what the ratio of payoff to illgotten gains has been. 1% would be our generous, upper estimate.

But at least justice is service and the stealing can continue.

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Dr. Engali's picture

They should make that up in a day's trading. Do they have to pay that in installments over a 30 year period?

Pladizow's picture

Slave suing the plantation master - what outcome would you expect?

Ahmeexnal's picture

The amalekite banksters will soon hang.

NotApplicable's picture

They'll probably pay with some MBS paper, or some of their trillions in interest rate derivatives.

SparkySC's picture

Do they have to also give back ill-gotten gains? 

On top of the fine paid?


Otherwise, you'd be CRAZY NOT TO STEAL IN THE FIRST PLACE if you're better off stealing and you don't have a fear of Jail-time and massive fines. This sounds like steal first, worry (wait that's too strong of a word,,,, think, think, think...) about it later.




GeneMarchbanks's picture

It's much easier to give head when you're toothless. Less can go wrong.

Another victory for justice!

FlyPaper's picture

Government collects money when banks commit fraud.

Incentive for government is to let the fraud continue to collect more tolls.

Talk about moral hazard.  

And of course, the defrauded get - what?


NotApplicable's picture

The ability to sleep soundly at night knowing that fedgov is watching out for them.

Blues Traveler's picture

dirty deeds done dirt cheap, in fact highly profitable.

The defrauded are subject to slow crank on the meat grinder

Careless Whisper's picture

Is bid rigging a crime? Just wonderin'

Careless Whisper's picture

Is bid rigging a crime? Just wonderin'

Raymond Reason's picture

No, it falls under "Cost of Goods Sold" on the P&L. 

pelican's picture

So why would anyone still trust any of these investment bankers?

b_thunder's picture

The punishment that fits the.... status of JPMadoff has been given by the Feds


That Peak Oil Guy's picture

Would $35 million even pay for a pair of Jamie's cuff links?


NotApplicable's picture

Depends on whose balls they're made out of.

Id fight Gandhi's picture

Admit no guilt, pay a fraction of your theft, they usual.

So sick of it all.

SheepDog-One's picture

If I was JPM I'd have said 'Pay you SEC $35 million fine....or WHAT? Youll get mideval on our ass? Whatever, do your worst I dont care I get free money from The Bernank'!

Downtoolong's picture

 A $5 prostitute is still a prostitute. There are no $5,000 prostitutes, only $5,000 Johns.

Atomizer's picture

No, actually the taxpaying proles will flip the bill. How? New skimming techniques.


Proposal governing debit card interchange fees, the fraud prevention adjustment, and routing and exclusivity restrictions.

Fast forward to 10m. Cost, Cost, Cost! You'll understand after watching.

williambanzai7's picture

Yep, a few big fucking apples Jamie.

Franken_Stein's picture


Why are you even surprised Tyler.

After all the biggest shareholder of J.P.Morgan is none other than David Rockefeller.

He's the owner of Chase Manhattan Bank.



The Rockefellers run the place called Congress.

Via their oil lobbyists, and via their banking lobbyists.

They own Exxon and via straw men various other oil companies.


And they sit in the Bilderberg Group since 1954, as well as the Trilateral Commission and the Council on Foreign Relations.


They shape U.S. policies like no other.


NotApplicable's picture

I can't imagine anyone around here is surprised, let alone Tyler.

Contra_Man's picture

... and yet the Banksters still roam free.

eg. Stanford awaits trial as Judge delays counter-party disclosure

until January 2012 from his original arrest dating back to 2009!

Ahmeexnal's picture

He did get a nice facejob recently:

Plus the daily rapes. Yeah, let his trial await.
Gotta let the inmates have some fun with their girlie banker.

Now...can you imagine what they'd do to effeminate Dimon???

slewie the pi-rat's picture

slewie is full of heartfelt forgiveness for these worthless fuking shitheaded lowlife asswipe criminals.  amen.

Bastiat's picture

Typical crap.  But it's not over for JPM and it's bid-rigging partners. There are damage lawsuits--and they won't settle as cheaply as our bought-and-paid-for regulators.

anynonmous's picture

I wonder how Leandro Andrade, who stole three video tapes from a Kmart in California  feels about this?  Leandor is doing fifty years (50 years) for that transgression.

anynonmous's picture

I wonder how Leandro Andrade, who stole three video tapes from a Kmart in California  feels about this?  Leandro is doing fifty years (50 years) for that transgression.

Raymond Reason's picture

How 'bout a public apology instead of a fine?

Abby Normal's picture

According to the wires (bondbuyer, etc), they actually paid a total of $228 million in fines and reimbursement for bid rigging $13 million - not exactly a profitable trade...

Mr. Poon's picture

With all due respect, citing the facts won't get you far on this site.

HEHEHE's picture

"It would be great to discover just what the profit that JPM had generated for the 6 year period associated with this fraudulent activity was, and what the ratio of payoff to illgotten gains has been."

Like the regulators or AG's care as long as the campaign donations keep coming.

Lord Blankcheck's picture

$35million tax write'-off'

the cost of bending over the World

onlooker's picture

Will this type of crime “trickle down” so that we can all enjoy it? Or, is this something you must be born into, so that there may be a dollar amount qualifier, to participate.  It would seem obvious that only a small percent are “caught”, implying that there could be an opportunity for wider participation. Yes we can, if equality is reality.

anynonmous's picture

until I read the caption I was not aware that was an apple

Problem Is's picture

$51.2 Million for Years and Years of Bid Rigging?
Jamie IS the best of the best of the best... fraudster...

Nice link and commentary, Jesse... I usually meander over to your Cafe after ZH...

Pouvez-vous avoir Madame Le Moderateur servir le Gâteau au Fromage avec des framboises fraîches?

fuu's picture

We love you Jesse!

buzzsaw99's picture

The suckers, er, chumps, er marks, er, dupes, er, municipalities will get jack squat of course.

Abby Normal's picture

Actually, the total settlement was $228 million for $13mm in gain. The municipalities received $52 million directly and the AG's of the states involved received another $177mm - per WSJ

scatterbrains's picture

I get it, so they only defrauded one municipality and unluckily happened to get  caught that one and only time they committed fraud over that 6 year period.

ak_khanna's picture

JPM got the third degree punishment for fraud which is equivalent to a slap on the wrist with a 100 dollar bundle, was asked to stand in the corner for 5 minutes and now will be given a few billion dollars for their inconvenie­­nce to go and gamble in the stock, commodity and currency markets. After all they are too big to fail till they become too big to bail.

The too big to fail bunch of banksters can get away with murder, fraud, coercian, harrassmen­­t of the general public and any other illegal activity under the sun because they have a lot of influence on the political class, the rule makers and the rule enforcers due to their enormous purchasing power. So irrespecti­­ve of the position in the government­­, everyone works for their benefit. 

Problem Is's picture

Can't have any outstanding bid rigging cases against JPM when Barry Soetoro nominates his puppet-string-master Jamie Dimon for Secretary of US Treasury...

Don't Worry
Jamie already has a tax payer paid for gold plated office to bring to DC...