As if anyone needed a reminder of how corrupt Wall Street is, here are two easy to digest videos providing some additional perspectives on why the entity that controls the Fed, Congress and the Senate, not to mention the teleprompter in chief, is nothing but a bunch of criminals. While nothing new to regular readers, the NYT's Louise Story has taken a look at securities lending, dominated by firms such as State Street, BoNY and JPM, which she describes as follows: "funds lend some of their stocks and bonds to Wall Street, in return for
cash that banks like JPMorgan then invest. If the trades do well, the
bank takes a cut of the profits. If the trades do poorly, the funds
absorb all of the losses." In other words, just one more of two magic coin flips in which the US taxpayer always has a 100% chance of losing. The response by JPM on allegations that it entices clients in a rigged game is memorable: "If customers lose money that they have entrusted with the bank, he said,
that “can lead to a loss of clients and can affect the reputation of
the business." Um, what reputation? And in another clip, the Huffington Post Investigative Fund also takes a look at JPMorgan (is the administration's former war with Goldman now shifting over to the house of Dimon? That will teach you to turn down that SecTres post Jamie...) in a documentary which look at what it dubs Wall Street's new sweet spot "as surrogate tax collectors who see profits in tacking on fees and threatening to foreclose when homeowners fall behind on property taxes." Well, at least the whole foreclose bit is off the table for now.
The NYT on the lose/lose of securities lending in a failed Ponzi environment (full video after the jump).
And HuffPo on JPM as a surrogate tax collector: