More news on banks behaving badly but not going to jail for it: yesterday, JPMorgan Chase agreed to pay $410 million to settle after the bank was accused of forcing an energy provider to “transform ‘money-losing power plants into powerful profit centers.’”
It’s been noted that JPMorgan has generally been unyielding with government authorities, but that the bank is trying to smooth things over with regulators as the bank’s reputation is slowly being tarnished through major trading losses and past resistance to cooperate.
The New York Times writes:
The complaints have buffeted Mr. Dimon, JPMorgan’s chief executive, who was once known as Washington’s favorite banker. In a meeting in April, regulators from the Federal Reserve and the Office of the Comptroller of the Currency warned Mr. Dimon that they were losing patience with JPMorgan.
Since then, Mr. Dimon has taken a more contrite tone. Weeks after the scolding, people briefed on the matter said, Mr. Dimon took a rare step of convening a town-hall-style meeting with examiners stationed at the bank’s Park Avenue headquarters. While he did not apologize for past missteps, Mr. Dimon conveyed a willingness to respond to their concerns…
This is big news for Chase and a hefty fine, but this sadly isn’t even the worst in the world of banking scandals. Read on for four other major financial scandals.