Why Matt Taibbi Thinks This Woman Is JPMorgan's "Worst Nightmare"

Tyler Durden's picture

In reality, there is nothing surprising in Matt Taibbi's latest piece since returning to Rolling Stone from the Intercept, as it tells a story everyone is by now is all too familiar with: a former bank employee (in this case Alayne Fleischmann) who was a worker in a bank's (in this case JPM) mortgage operations group, where she observed and engaged in what she describes as "massive criminal securities fraud" and who was fired after trying to bring the attention of those above her to said "criminal" activity.

The story doesn't end there, and as Carmen Segarra already showed, when she revealed that Goldman runs the NY Fed, once Alayne was let go and tried to "whistleblow" on the house of Jimon from the outside, she found the that US Department of Justice headed by Eric Holder is just as, if not more, corrupt, and in his desperate attempt to prevent discovery and bring JPM et al to justice, he would stretch the statue of limitations on frauds committed during the crisis long enough to where nobody had any legal recourse any more, up to and including the US taxpayer.

That is the 1 minute recap of yet another story in which the good guys lose, the bad guys bet everything on red, are bailed out when black hits, lie, never go to jail and instead use the same bailout funds to keep paying "settlement charges" to bribed government officials and avoid prison time. In short, the bad guys win.

And all with the help of every branch of the US government.

For those who want to read more, Taibbi's "The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare" is a must read, even if, as noted, it says nothing that frequent Zero Hedge readers didn't already know. It does, however, have some great cartoons.

Taibbi's punchline:

... In September, at a speech at NYU, Holder defended the lack of prosecutions of top executives on the grounds that, in the corporate context, sometimes bad things just happen without actual people being responsible. "Responsibility remains so diffuse, and top executives so insulated," Holder said, "that any misconduct could again be considered more a symptom of the institution's culture than a result of the willful actions of any single individual."

 

In other words, people don't commit crimes, corporate culture commits crimes! It's probably fortunate that Holder is quitting before he has time to apply the same logic to Mafia or terrorism cases.

 

Fleischmann, for her part, had begun to find the whole situation almost funny.

 

"I thought, 'I swear, Eric Holder is gas-lighting me,' " she says.

 

Ask her where the crime was, and Fleischmann will point out exactly how her bosses at JPMorgan Chase committed criminal fraud: It's right there in the documents; just hand her a highlighter and some Post-it notes – "We lawyers love flags" – and you will not find a more enthusiastic tour guide through a gazillion-page prospectus than Alayne Fleischmann.

 

She believes the proof is easily there for all the elements of the crime as defined by federal law – the bank made material misrepresentations, it made material omissions, and it did so willfully and with specific intent, consciously ignoring warnings from inside the firm and out.

 

She'd like to see something done about it, emphasizing that there still is time. The statute of limitations for wire fraud, for instance, has not run out, and she strongly believes there's a case there, against the bank's executives. She has no financial interest in any of this, no motive other than wanting the truth out. But more than anything, she wants it to be over.

 

In today's America, someone like Fleischmann – an honest person caught for a little while in the wrong place at the wrong time – has to be willing to live through an epic ordeal just to get to the point of being able to open her mouth and tell a truth or two. And when she finally gets there, she still has to risk everything to take that last step. "The assumption they make is that I won't blow up my life to do it," Fleischmann says. "But they're wrong about that."

 

Good for her, and great for her that it's finally out. But the big-picture ending still stings. She hopes otherwise, but the likely final verdict is a Pyrrhic victory.

 

Because after all this activity, all these court actions, all these penalties (both real and abortive), even after a fair amount of noise in the press, the target companies remain more ascendant than ever. The people who stole all those billions are still in place. And the bank is more untouchable than ever – former Debevoise & Plimpton hotshots Mary Jo White and Andrew Ceresny, who represented Chase for some of this case, have since been named to the two top jobs at the SEC. As for the bank itself, its stock price has gone up since the settlement and flirts weekly with five-year highs. They may lose the odd battle, but the markets clearly believe the banks won the war. Truth is one thing, and if the right people fight hard enough, you might get to hear it from time to time. But justice is different, and still far enough away.

And the real punchline: nobody cares aobut justice as long as everyone is getting richer, if only on paper. It is what this nominal paper "wealth" disappears that things get scary for the Jamie Dimon's of the world, which is why the Fed will do everything to avert each and every market crash from now on until it finally loses control, because once people awake from the siren song of the printer, to realize they have nothing to show for years of labor and faith in a broken system, not to mention "Corzined" retirement funds that were invested in a Ponzi scheme, the only justice applicable, will be that of vigilantes.

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hedgeless_horseman's picture

 

 

And the real punchline: nobody cares aobut justice as long as everyone
is getting richer, if only on paper. It is what this nominal paper
"wealth" disappears that things get scary for the Jamie Dimon's of the
world, which is why the Fed will do everything to avert each and every
market crash from now on until it finally loses control, because once
people awake from the siren song of the printer, to realize they have
nothing to show for years of labor and faith in a broken system the only
justice that will be application will be that of vigilantes.

Fear we are returning to a time in history where it is a common occurrence to fight for one's life?

12ToothAssassin's picture

Taibbi is back from being silenced by Pierre Omidyar's "New Look Media" 25 million dollar wordpress blog! Got caught up in the money with Glenn Greenwald. Welcome back Matt, its about time.

Silky Johnson's picture

I hope that broad doesn't own a nail gun.

economics9698's picture

When I was a kid I never understood why the barbarians destroyed such a magnificent city such as was Rome.  Looking at Washington today I understand fully.

BaBaBouy's picture

Who Said ""EVIL EMPIRE"" ??????????????

NotApplicable's picture

I've been waiting all morning from this article, after seeing it earlier in the daily front-running post.

Kudos Matt!

chumbawamba's picture

Yeah, but to what end?  It's like reading a running narrative of your own eventual murder.

Nothing will come of this.  Everyone was colluding.  The banks, the government, the courts, the judges, even the idiots who thought they actually qualified for a half million dollar home on a $40K/year salary.

I am Chumbawamba.

hedgeless_horseman's picture

 

 

...because once people awake from the siren song of the printer, to realize they have nothing to show for years of labor and faith in a broken system, not to mention "Corzined" retirement funds that were invested in a Ponzi scheme, the only justice applicable, will be that of vigilantes.

 

SuperRay's picture

Eric Holder's new job - Board of directors for JPM, HSBC, BOA, etc....

hedgeless_horseman's picture

 

 

I do not imagine people will wake up in my lifetime, but that doesn't mean it isn't still fun to get a little range time in with one of these novelty Bad Guy targets. 

Anusocracy's picture

Regulatory capture is not a flaw of government, it is the modus operandi of government.

As always, the blame for every pee or shit stain left on society by government lies with those who want government.

Government is no longer needed except to satisfy the egos of the control freaks.

Took Red Pill's picture

Jamie Dimon is a fucking criminal, along with Eric Holder. They need to be behind bars!

mjcOH1's picture

"Why Matt Taibbi Thinks This Woman Is JPMorgan's "Worst Nightmare""

A bisexual snapper with Ebola who likes overpaid salesmen with delusions of grandeur?   Tell me more, tell me more!

rocker's picture

 Matt Taibbi is the Best Financial Journalist in the World.  Nobody is willing to dig harder and step on more toes.

 He goes after stock market companies who lobby Congressman in the Health care industry and whereever he can find fraud.

He sees wrong and says somebody needs to see this bullshit. The man has really exposed dirt all over yet is shuffled under the rug.

I read Rolling Stone just to read his stuff.  Note: He loves Goldman and JPMorgan......LOL   

upWising's picture

Videostream interview with both of these interesting people available as we read at ::

www.democracynow.org

discopimp's picture

Pray he doesn't get Michael Hastings treatment

NEOSERF's picture

Not to put too fine a point on it but yes, until this starts happening and the elite truly get worried of something, they will continue to pillage at the top of the food chain, unchallenged.

illyia's picture

Yeah. But it won't hurt anything to yell and scream  a little more than usual. The problem IS that all the discoveries have been made, the results are completely obvious to anyone who looks -  and yet "we just don't have enough to prosecute"... Until we do. After the statutes  xyz expire - or there is a fire in Cheney's attic or some Att. Gen. is retired and they have to start all over. Then everyone can be Shocked!, Just Shocked!! Whocouldanode, again.

The only thing you have to make yourself heard, Chumbawamba, is your thumbs.

Go ahead. You have at least two.

Use them.

:o|

illyia's picture

Yeah. But it won't hurt anything to yell and scream a little more than usual. The problem IS that all the discoveries have been made, the results are obvious and yet "we just don't have enough to prosecute" until we do. After the statutes of xyz expire - or there is a fire in Cheney's attic or someone is retired and they have to start all over. Then everyone can be Shocked!, Just Shocked!!

The only thing you have Chumbawamba is your thumbs.

Go ahead. You have at least two.

Use them.

:o|

Thisson's picture

If you actually read the story, perhaps you would notice that the only party *NOT* complicit in the scheme was the judiciary.

Judge Rakoff objected to the other settlements which caused Chase to attempt to circumvent the courts.

sainchaw's picture

true, if everyone is in on the crime then who will be expected to point the finger of justice. 

Jack Burton's picture

Great insight "9698"!  Rome was every bit as corrupt as modern Washington. Barbarians were what Rome called the peoples Rome was busy exploiting and attacking for profit. Barbarians were taken captive for use as slaves in all parts of Romes empire. They were explioted in their homelands by Rome's armies. They simply went to Rome as an act of Freedom Fighting against an great, but evil driven empire. Who would argue the Washington Empire is not every but as evil as Rome was?

There is no American Empire! It is a Washington DC empire. We need to see that many of us people in the USA are everybit as exploited as foreign peoples by Washington DC the great Whore House on the Patomic.

Stackers's picture

Old news. I'm sure Chase is quaking in their boots from Taibbi's article

Holder confirmed "Too Big To Jail" in congressional testimony a long time ago

https://www.youtube.com/watch?v=Z3zwhp5-jXA

pelican's picture

Why kill her when the Justice Department will not follow up with it.

Silky Johnson's picture

For the same reason all psychos do what they do.......for kicks!

Bilderberg Member's picture

You people need to settle down! The Justice Dept. is working extensively on A-Rod's performance enhancement drug allegations.

pelican's picture

Holder just announced he takes this seriously and will pursue fining JP .01 for every dollar made in fraudulant activity.

 

 

 

Ignatius's picture

"... In September, at a speech at NYU, Holder defended the lack of prosecutions of top executives on the grounds that, in the corporate context, sometimes bad things just happen without actual people being responsible. "Responsibility remains so diffuse, and top executives so insulated," Holder said, "that any misconduct could again be considered more a symptom of the institution's culture than a result of the willful actions of any single individual."

 In other words, people don't commit crimes, corporate culture commits crimes! It's probably fortunate that Holder is quitting before he has time to apply the same logic to Mafia or terrorism cases."

They pay really well for this level of bullshit.

Holder, please step in front of a bus.

chumbawamba's picture

Corporations are PERSONS.  We went through this whole exercise with the stupid People United v. FEC nonsense.  When a PERSON commits a crime you prosecute the PERSON.  It doesn't matter that the juristic PERSON is made up of people that may have only committed one innocent act in the overall body of the crime.  The juristic PERSON--the corporation--committed a crime, and that is who you prosecute.

This all goes to prove on simple fact: Eric Holder is a nigger.

I am Chumbawamba.

Buckaroo Banzai's picture

"Heads I win, tails you lose!"

Ignatius's picture

Since you insist on using the offensive "nigger" as a descriptive, then carry it all the way, that being, "house nigger".

cluelessminion's picture

Chumbawamba  I need to know.  What do you mean by "nigger"?

What is a "nigger"?

 

I'd really like to know if you'll elaborate.

Never One Roach's picture

Rampant fraud and corruption at every level has trickled down to the average 'Joe' who feels, "Why shouldn't I do it also?"

 

For example, our manager finally caught the person who was pilfering many minor office supplies form our place...ya, know, things like staplers, etc ... He happen to see one of our fairly unique engraved items on Ebay and tracked it back to guess who? ... our 67 y.o. janitor!

When confronted, the janitor pleaded his defnse, 'Everybody's doing it!"

It's a perfect example of what Holder, Barry, Bush, Wall Street, the courts, and so on have created.

auntiesocial's picture

My other car has Michael Hastings head in it...

Spastica Rex's picture

Welcome back to corporate media, Matt!

Hey - did you know Zero Hedge is a Drupal blog?

Numbskull.

NotApplicable's picture

That would explain all of the "Maintenance Mode" pages. Drupal will chew up db resources if not properly configured to go easy on them.

Spastica Rex's picture

I just wish the ZH "tech team" would fix their character encoding.

??????????????????????????????????????????

??????????????????????????????????????????

NotApplicable's picture

Dunno, I'm getting to the point where I detest upgrades, as they're mostly nothing but "New & Improved" social media gadgets that annoy the shit out of me.

I've had to uninstall nearly everything on my android tablet as it's too busy doing it's own thing to respond to my input.

Jumbotron's picture

On a long enough timeline.......you go to maintenance mode.

Bangalore Equity Trader's picture

Listen Rex.

ZH Tech Team is sucks. Outsource "NOW"!

NoVa's picture

The full article is a fantastic read.  

It has been years since I read that rag, but it was well written, very pointed and fully truthful about our corrupt Ministry of Love (DOJ) and Ministry of Truth (Oblamo).

 

NoVa

Tinky's picture

That "rag", thanks largely to Taibbi, is one of the very few sources of pungent, investigative journalism remaining in the U.S.

upWising's picture

Videostream interview with both of these interesting people available as we read at ::

www.democracynow.org

Ignatius's picture

Spas, atleast give Matt some credit for realizing what a black hole of journalism The Intercept is, and getting out.

NotApplicable's picture

I was pleasantly surprised to see him back at RS, as I hadn't seen anything from him since he left.

Spastica Rex's picture

Well, I think he should go wherever he wants to go, and The Intercept is hardly sacrosanct, although calling it a "black hole" is self defeating to anyone who values independent media. I was speaking specifically to the stupid comment I replied to, not to any problems I have with Taibbi, 'cuz I really don't have any.

Cathartes Aura's picture

lol,

Welcome back to corporate media, Matt!

for those who like to watch the action behind the scenes, here's the Great GreenWald's collective response to Matt's leaving. . .

(lifted from the comment thread over here, for those who like their "news" dripping in sarcastic truths)

Spastica Rex's picture

I was poking a stick at 12ToothAssassin and its stupid, stupid comment.

Mr. Taibbi should write for what he sees as the best news outlet. Had he stayed, The Intercept might have grown in influence, and as Greenwald says, his leaving is a huge loss.

I don't really care, except I do care to support non-corporate media.

Cathartes Aura's picture

ah well, still made me laugh.

as for the aptly named "Intercept" - funded by an oligarch that also spreads his billions in such places as USAID, and "employs" the annoying gate-keeper creep GreenWald - I'm okay with cheering for its continued stasis.

Payne's picture

why don't we see a Russia connection fund the entire legal effort to bring down the House of Morgan ?