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JPM Refuses To Comply With Broad PFG Subpoena

Tyler Durden's picture




 

Last week we wrote that we were not surprised to learn that the first party of interest in the PFG bankruptcy was "none other than JPMorgan, which together with various other banks, will be the target of a subpoena by the PFG trustee." We added "How shocking will it be to find that Dimon's company is once again implicated in this particular episode of monetary vaporization." It appears that we were not the only ones shocked to learn that Jamie Dimon's firm could make a repeat appearance again when it comes to missing client money: JPM itself seems to not have expected this development. The result, as just reported by Reuters: "JPMorgan Chase & Co on Monday sought to limit the power the bankruptcy trustee for Peregrine Financial Group has to subpoena information from financial institutions that did business with the failed brokerage." Why, whatever may JPMorgan be hiding, and whyever is it taking preemptive steps from preventing such information from leaking into the public domain: because it is too "burdensome" - it is only logical that Jamie can not dedicate one person of his 261,453 employees to this modest matter. No fear though: even if it is found that just like in the MF Global bankruptcy JPM may have overreached just a tad when it comes to money that doesn't belong to it, the CFTC can just say that as a result of an extensive 4 year investigation, JPM was found to have done nothing wrong, and if the public can please already disperse.

Per Reuters:

JPMorgan said in a court filing that Trustee Ira Bodenstein's request for authorization from a bankruptcy court to serve subpoenas on financial information may be overly burdensome by encompassing Peregrine's affiliates and wholly owned subsidiaries, in addition to the brokerage itself.

 

JPMorgan reserved the right to "modify or quash" subpoenas that are too burdensome or broad.

 

Bodenstein last week asked the court for the authority to require 10 financial institutions, including JPMorgan, to produce information about open and closed accounts maintained by Peregrine, its affiliates and subsidiaries.

What is the "legal" basis that JPM demands to be let off the subpoena hook?

Bodenstein said in an interview on Monday that his request to serve subpoenas was "pretty standard," and JPMorgan said in the filing that it did not object to the court granting him the general authority to issue subpoenas upon the bank.

 

However, JPMorgan said the "conditions upon which the trustee seeks to conduct the proposed examination are anything but 'routine.'"

 

JPMorgan also objected to Bodenstein's request that the bankruptcy court prohibit subpoenaed financial institutions from recouping any costs incurred with providing documents.

Because obviously JPM is pennypinching like a modest regional bank now that it no longer is able to mismark hundreds of billions in CDS (which no longer have the implied backstop of the Fed).

As for why JPM is suddenly hiding behind a quash order, we doubt this needs any particular clarification: after all Jamie Dimon is sick and tired of pretending to be questioned by his part-time employees in Congress and Senate. Another MF Global-like spectacle may be good for politician and C-SPAN ratings, but will hardly delight JPM's shareholders.

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Mon, 08/06/2012 - 17:54 | 2682969 disabledvet
disabledvet's picture

"Lumber up...Limbo DOWN!" ain't no big thing JP! "wait for the bell to ring"!

Mon, 08/06/2012 - 18:01 | 2682985 FEDbuster
FEDbuster's picture

"We are not just Too Big To Fail, now we are Above the Law, bitchez!!" , Jamie Dimon

Mon, 08/06/2012 - 18:09 | 2683000 cossack55
cossack55's picture

"No. Don't shoot. Let em' burn!"

            Saving Private Ryan

Mon, 08/06/2012 - 21:21 | 2683410 Bringin It
Bringin It's picture

Cossack - had to vote you down for [inadvertent] Hollywood meme promotion.

Mon, 08/06/2012 - 22:17 | 2683528 TruthInSunshine
TruthInSunshine's picture

Jamie Dimon & Lloyd Blankfein (and all their close friends who own your dear 'elected' legislators & appointed federal judges and regulators) are the modern day version of Al Capone & The Untouchables, except that they steal trillions upon trillions of the money of dozens of millions and millions of other people, directly and indirectly.

They're 'made men' of the Rotchschild Family.

When they tell Obama, Pelosi, Reid, Bachus, McCain, Clarence Thomas, John Roberts, or whomever else to jump, the only question forthcoming is "how high massa'?"

Mon, 08/06/2012 - 18:34 | 2683042 rufusbird
rufusbird's picture

Too big to Jail...

Mon, 08/06/2012 - 18:38 | 2683050 Thomas
Thomas's picture

Let's take some rubber bullets into JPM. These guys are incorrigable. Time to bury them.

Mon, 08/06/2012 - 19:10 | 2683111 Xibalba
Xibalba's picture

JPM = FED

They own all the rubber bullets. 

Mon, 08/06/2012 - 19:42 | 2683169 malikai
malikai's picture

Maybe there will be a fresh new body for the Morgue some time this week?

Mon, 08/06/2012 - 19:30 | 2683153 You Didn't Buil...
You Didn't Build That's picture

"the law is for the Little People" some CEO is saying right now over a 7 course dinner at the Ritz.

Mon, 08/06/2012 - 18:35 | 2683043 Atlantis Consigliore
Atlantis Consigliore's picture

US Bank $ Vaporized at Morgan?  In PFG Scandal, JPMorgan Chase Had Surprising Role: It Held Customer Accounts

http://huff.to/MmU3TZ via @HuffPostBiz

Mon, 08/06/2012 - 21:10 | 2683374 Biggvs
Biggvs's picture

Dim the lights, you can guess the rest.

Mon, 08/06/2012 - 23:30 | 2683702 TheFourthStooge-ing
TheFourthStooge-ing's picture

In every dream home a heartache.

Tue, 08/07/2012 - 11:25 | 2684757 Biggvs
Biggvs's picture

Best line ever: I blew up your body, but you blew my mind.

CPL593H

Mon, 08/06/2012 - 17:55 | 2682970 Manthong
Manthong's picture

What's the big deal?

It's only a few hundred million dollars..

Mon, 08/06/2012 - 18:54 | 2683080 Lost Wages
Lost Wages's picture

"I wipe my ass with a few hundred million dollars." -Jamie Dimon

Mon, 08/06/2012 - 19:51 | 2683183 lemonobrien
lemonobrien's picture

Then I distribute it through the ATMs, so everyone can smell the "sweet smell of success."

Tue, 08/07/2012 - 08:35 | 2684166 sessinpo
sessinpo's picture

For him, that's a complete body wash.

Mon, 08/06/2012 - 17:55 | 2682971 PSEUDOLOGOI
PSEUDOLOGOI's picture

all your subpoenas are belong to us now

Mon, 08/06/2012 - 18:03 | 2682987 bank guy in Brussels
bank guy in Brussels's picture

JP Morgan says

« ...subpoenas on financial information may be overly burdensome ... »

even with all those hundreds of lawyers and law clerks

and 1% government money to finance all legal expenses

they still find the paperwork request 'burdensome'

Damn ... the public interest is 'vapourised' again

Mon, 08/06/2012 - 18:31 | 2683036 Whoa Dammit
Whoa Dammit's picture

JPM is acting like they have to produce handwritten documents involving hundreds of scribes using papyrus, quills and ink wells, instead of it taking one guy 5 minutes to print the reports off their computer system.

Mon, 08/06/2012 - 18:57 | 2683087 El Oregonian
El Oregonian's picture

In the mold of the late "Queen of Mean" Leona Helmsley: "Subpoenas are for little people".

Mon, 08/06/2012 - 17:58 | 2682972 SilverDoctors
SilverDoctors's picture

Tyler, perhaps you missed it yesterday, but Bart Chilton has denied the FT piece on silver, stating it is'premature and innacurate', and also stated that 'there have been devious efforts related to moving the price of silver'.

Chilton informed me that he expects the CFTC's investigation on silver manipulation to conclude by September, contrary to the FT report that it is being dropped.

http://www.silverdoctors.com/bart-chilton-ft-report-that-cftc-to-drop-si...

Mon, 08/06/2012 - 18:01 | 2682983 Tyler Durden
Tyler Durden's picture

It appears that Chilton has told a different story to everyone who has asked him a question.

Mon, 08/06/2012 - 18:11 | 2683003 cossack55
cossack55's picture

".....has asked him a question, and remarkably, has not once uttered the truth"

Fixed it for ya, Tylers.

Mon, 08/06/2012 - 18:59 | 2683093 runlevel
runlevel's picture

Seriously, if chilton is in on the scam.. he's a great actor. I honestly cannot tell what side he is on.. i hate to shit on the guy if he's truly innocent and trying his best. 

Mon, 08/06/2012 - 19:11 | 2683113 Blagio
Blagio's picture

Shit away runlevel. This guy comes out from his hideaway every now and then to appease the peasants. Make him prove himself as they are all unelected to their perch.

Mon, 08/06/2012 - 19:16 | 2683124 runlevel
runlevel's picture

good point.

Mon, 08/06/2012 - 19:07 | 2683105 AL_SWEARENGEN
AL_SWEARENGEN's picture

Obviously Chilton has a 'dual mandate' to uphold.  One to his banker bosses and one to the people.  Which will he ultimately choose?

Mon, 08/06/2012 - 17:58 | 2682977 Conax
Conax's picture

Perhaps a little water-boarding is in order.

Where are the documents?

<<Gurgle * * Glug *  * GaaAA>>

I'll ask again...

 

Mon, 08/06/2012 - 19:00 | 2683098 runlevel
runlevel's picture

well since its not torture why not?

Mon, 08/06/2012 - 17:58 | 2682978 DeFeralCat
DeFeralCat's picture

Son of a Squid!!

Mon, 08/06/2012 - 18:00 | 2682980 LawsofPhysics
LawsofPhysics's picture

JPM looking to be the first for a wrist slap?  Eventually they pay but a small percentage of what they stole and move on to profitting from the collapse.  Same as it ever was.

Mon, 08/06/2012 - 18:05 | 2682993 bank guy in Brussels
bank guy in Brussels's picture

Indeed

"Today US business is measured by what you stole minus the fine you paid."

- Jim Sinclair, Mineset

Mon, 08/06/2012 - 18:17 | 2683018 MarsInScorpio
MarsInScorpio's picture

Bank Guy:

 

Excellent!!

-30-

Mon, 08/06/2012 - 22:29 | 2683035 Haole
Haole's picture

Not that I'm a fan but like Max Keiser once said, "take fraud out of the business model of the U.S. and all you would be left with is porn and doughnuts."

Mon, 08/06/2012 - 18:46 | 2682984 CunnyFunt
CunnyFunt's picture

This is where Chump Schumer comes in handy.

He's got "pull".

He and Mick Bloomberg are the reach-around act.

 

http://nyopoliticker.files.wordpress.com/2011/11/chuck_schumer_art_400_2...

Mon, 08/06/2012 - 18:52 | 2683076 infinity8
infinity8's picture

I greened you for your handle.

Welcome. :)

Mon, 08/06/2012 - 20:25 | 2683233 cosmictrainwreck
cosmictrainwreck's picture

that's the alternate function for their HFT algos.... computing "cost/benefit" analysis, aka penalty/pay-off ratios; comes up *WIN* 99.99+% of the time

Mon, 08/06/2012 - 18:02 | 2682986 apberusdisvet
apberusdisvet's picture

The wizard doesn't even need to hide behind the curtain anymore.  It's called theft in plain sight; in your face, suckas.

Mon, 08/06/2012 - 18:04 | 2682989 YesWeKahn
YesWeKahn's picture

How can JPMorgue do anything wrong, it owns the FED.

Mon, 08/06/2012 - 18:12 | 2683008 cossack55
cossack55's picture

It IS the FED.

Mon, 08/06/2012 - 18:14 | 2683016 nmewn
nmewn's picture

"Gold is money. Everything else is credit." - JP Morgan

Back when they were just a tad more honest.

Mon, 08/06/2012 - 18:04 | 2682990 Hype Alert
Hype Alert's picture

Pay the fine and thanks for playing.

Mon, 08/06/2012 - 18:05 | 2682991 LMAOLORI
LMAOLORI's picture

 

 

No big deal that's obama's favorite banker nothing will come of this

http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html

 

JPMorgan Employees Join Goldman Sachs Among Top Obama Donors

http://www.bloomberg.com/news/2012-03-20/jpmorgan-employees-join-goldman-sachs-among-top-obama-donors.html

 

Remember the cuff links :)

 

snip

 

The boss of one of America's biggest banks has been snapped wearing a set of presidential cufflinks, prompting speculation that they were a gift from President Barack Obama.

JPMorgan Chase CEO Jamie Dimon was sporting the cufflinks, emblazoned with the seal of the President of the United States, at a senate banking committee hearing on Wednesday.

One of Wall Street's wealthiest fat cats, Mr Dimon is believed to have a good relationship with Mr Obama, having visited the White House 16 times and the President on at least three of those occasions.

And the love is reciprocated, with Mr Obama describing the millionaire in a May interview as 'one of the smartest bankers we've got' and his bank as 'one of the best managed banks there is'.

more

 

http://www.dailymail.co.uk/news/article-2160340/JPMorgan-Chase-CEO-Jamie-Dimon-wear-presidential-cufflinks-prompting-speculation-gift-Obama.html

Mon, 08/06/2012 - 21:19 | 2683405 Ned Zeppelin
Ned Zeppelin's picture

Need any other reason to not bother to vote this November? If this keeps up, better off buying a Sig Sauer instead, so you can properly record your vote in the election coming after November, where paper ballots may not be the method whereby the winner is determined.

Tue, 08/07/2012 - 00:59 | 2683872 Tom Servo
Tom Servo's picture

Win!  My wife and I will be stimulating the local firearm dealership economy this Nov 6th instead of voting as well.  Running 1000 rounds through a glock, sig or taurus will be more productive than voting...

Maybe try an AK, before they are banned in O's 2nd term...

Mon, 08/06/2012 - 18:05 | 2682992 Meesohaawnee
Meesohaawnee's picture

better start writing a bigger campaign contribution check jamie

Mon, 08/06/2012 - 18:05 | 2682994 q99x2
q99x2's picture

May the CIA target Jamie Dimon.

Mon, 08/06/2012 - 18:13 | 2683011 cossack55
cossack55's picture

But then he would be completely safe.

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