“J.P. Morgan Set to Agree To Big Fine For ‘Whale'” Wall Street Journal, September 17, 2013 A1. http://on.wsj.com/16d3Ntn
J. P. Morgan is a big topic lately, as are the numbers for the fines for the London Whale debacle. It has been the topic of an earlier post. http://bit.ly/18ZsPxV
A slightly different take here. The settlement is based on the alleged failure to supervise a couple of traders and the failure to have sufficient internal policies to prevent the cover up. Apparently top management gets a pass for telling investors stuff that wasn’t true, and the investors get the bill.
I am struck by the application or not of the Federal Sentencing Guidelines, and the decision not to charge the company or its employees with a federal crime. 18 USC Sec. 1519 is must reading for anyone in a business heavily regulated by the government. Why isn’t it used more? Too big to fail is one thing, but too big to be charged with a crime? How will others learn?
Similar question as to why no 1519 charge against Halliburton for destroying cement tests post BP’s oil spill. The list goes on.