Tag Archives: Jamie Dimon

Top Ten Crime Stories of 2013

There were 16 school shootings that claimed 88 lives in the US in 2012, including the horrific massacre at Sandy Hook Elementary in Newtown, Connecticut on December 14, 2012. According to a recent Daily Beast investigation, 25 school shootings that claimed 18 lives have occurred since Newtown, including the most recent on December 12, 2013 at Arapahoe High School in Centennial, Colorado, which means the U.S. is experiencing about one school shooting every two weeks.

Thank goodness schools are closed for the year, and students are on vacation.

Still, the number of school shootings––and the country’s failure to address the issue with any meaningful legislation––ranks as one of my Top Ten Crime Stories of 2013.

My other top crime stores of 2013 are listed below in no particular order.

On April 15, two pressure-cooker bombs exploded at the crowded finish line of the Boston Marathon, killing three people and injuring 183 others. Twenty-six-year-old Tamerlan Tsarnaev and his 20-year-old brother, Dzhokhar, were accused of carrying out the bombing. Tamerlan died during a shootout with police days after the incident. Dzhokar was caught and faces the death penalty if convicted.

Former National Security Agency (NSA) contractor Edward Snowden leaked secret documents indicating that NSA surveillance extends into some of the personal communications of Americans and our overseas allies. The 30-year-old computer specialist fled the U.S. and now resides in Russia.

Ariel Castro was sentenced to life plus more than 1,000 years after pleading guilty to 937 counts including the kidnapping and rape of three women who he held captive for a decade. He committed suicide months after the conviction by hanging himself in his jail cell.

George Zimmerman was acquitted of second-degree murder and manslaughter in the death of 17-year-old Trayvon Martin. Martin was shot while walking home late at night from his father’s house in a gated community in Sanford FL. Under Florida’s Stand Your Ground law, Zimmerman argued, he was justified in using lethal force to save his life.

Jody Arias was convicted of first-degree murder for the 2008 killing her ex-boyfriend, Travis Alexander. He had been stabbed multiple times, had his throat slashed, and was shot in the face. But jurors deadlocked on whether Arias should be executed or face life in prison.

John Beale, the EPA’s highest-paid employee and a leading expert on climate change was sentenced to 32 months in prison for defrauding the agency out of nearly $900,000 in unearned pay and bonuses. Beale, who convinced his bosses, friends, and even his wife that he was a spy, admitted to missing more than 2½ years of work at the EPA over the last decade, during which time he claimed to work for the CIA on missions that kept him away from his job as a senior adviser in EPA’s Office of Air and Radiation.

In August, Aaron Hernandez, tight end for the New England Patriots, was indicted by a grand jury for the June murder of Odin Lloyd and five weapons charges. Hernandez is also under investigation for murders in both Florida and Massachusetts. In September, Hernandez was arraigned and pleaded not guilty to first-degree murder. If convicted, he faces life in jail without parole.

Former LAPD officer Christopher Dorner killed four people, including three police officers, in a shooting spree before fleeing. The search for Dorner spanned a week and two borders.
He was found dead by a self-inflicted gunshot wound to the head when authorities finally hunted him down and surrounded the cabin near Big Bear Lake, California, where he had taken refuge.

JPMorgan Chase, the poster child for Wall Street corruption and the two-tiered justice system, is under eight separate investigations by the U.S. Department of Justice. Investigations involve potentially criminal matters ranging from allegations of hiring well-connected family members to get business in Asia; turning a blind eye to fraudulent transactions that Bernard Madoff ran through his business bank account; rigging the Libor interest rate index; manipulating energy trading markets; gambling in London with insured deposits (London Whale episode); to improper credit derivatives and mortgage bond sales. Having paid out $13 billion in fines, it is still an open question as to whether any of the top executives at the bank, including CEO Jamie Dimon, will ever be tried for fraud and convicted.

Wall Street Continues To Burn

Chief Executive Jamie Dimon has survived a move to oust him as chairman of JP Morgan-Chase, even though the FBI’s financial crimes squad is investigating how his bank lost $2 billion or more from risky speculative trades.

Still, the likelihood of any charges being filed against Dimon or anyone else at his firm are slim to none, given that no one has ever been charged for the events leading up to the 2008 financial debacle that nearly brought down the US economy. Dimon admitted on Meet the Press last Sunday that it was “stupid.” Ya think? But what is even more stupid is that Congress hasn’t broken up the five largest banks and reinstituted Glass-Steagal and the Bank Holding Company Act.

In 1933, following the 1929 stock market crash and the nationwide failure of nearly 5,000 commercial banks, Congress passed the Glass-Steagall Act, which set up a regulatory firewall between commercial and investment bank activities. At the time, commercial banks were accused of being too speculative and taking on huge risks in the hope of even bigger rewards. Sound familiar?

Then in 1956 Congress passed the Bank Holding Company Act that created a wall between insurance and banking by prohibiting banks from underwriting insurance, though banks could sell insurance and insurance products.

Never comfortable with success, Congress passed the Gramm-Leach-Bilely Act in 1999, which repealed the Glass-Steagall Act’s restrictions on bank and securities-firm affiliations. It also amended the Bank Holding Company Act and allowed banking institutions to provide a broader range of services, including underwriting. In other words, the new law removed the very restrictions that Glass-Steagall had erected.

Free once again to speculate with taxpayer money, Wall Street gamblers crashed the US economy in 2008, all the while arguing against more government regulation by saying that bankers could manage their businesses without oversight.

Since the taxpayer bailout, the five largest banks are now 13% larger than they were before the financial collapse. The stock market has doubled. The Wall Street casino is still placing bets with taxpayer money. The largest financial institutions have spent billions lobbying Congress against any form of regulation. The banks are basically in charge of their own risk management. Most of the Dodd/Frank legislation designed to end the speculation hasn’t even been implemented yet.

The chances of another financial meltdown are rising with each passing day. While Congress fiddles, the country’s financial house continues to burn, driven by the winds of high-risk speculation with taxpayer money. Next time, there may be no way of putting out the inferno that could wipeout trillions in savings and pensions, and plunge the country into a deep and long-lasting depression.