Saturday, August 29, 2009

In case you missed the connection between BO & JP Morgan





Much has been written about Government Sachs but little is heard about JP Morgan the Residents favorite banker....

The Federal Reserve is one of the most powerful and secretive institutions in Washington, long considered beyond the reach of lawmakers. But now, as details emerge of how the Fed secretly doled out YOUR MONEY...(This video combined with the explanation below may help you understand the connection)


Look who BO went to for "support" here...

Bribes here...

(HT Economic Policy Journal)

President Obama's Favorite Banker

As long term EPJ readers know, for some time, I identified Jamie Dimon/JPMorgan Chase as having favored banking status in the Obama Administration, along with Goldman Sachs. See The Gifting of Washington Mutual Bank to Jamie Dimon and Gov Shovels More Cash to JPMorgan Chase .

Oh, I knew something was going on. And was pretty blunt about it:

...just how did the government's fair haired boy Jamie Dimon at JPMorganChase end up not needing to raise any capital?

I knew something was up but, I couldn't figure the connection. Now, in retrospect, it should have been obvious. JPMorgan Chase is at its core
Chicago-based Bank One. Dimon moved to Chicago when he became head of Bank One. In record time, Dimon weaseled his way into the Chicago's old boys network that launched Obama's presidential campaign.

Hey, don't take my word on it, take a look at today's
front page Sunday NYT piece that finally turned the light on in the attic for me:

Jamie Dimon, the head of JPMorgan Chase, will hold a meeting of his board here in the nation’s capital for the first time on Monday, with a special guest expected: the White House chief of staff, Rahm Emanuel.

Haraz N. Ghanbari/Associated Press

Jamie Dimon of JPMorgan.

Mr. Emanuel’s appearance would underscore the pull of Mr. Dimon, who amid the disgrace of his industry has emerged as President Obama’s favorite banker, and in turn, the envy of his Wall Street rivals. It also reflects a good return on what Mr. Dimon has labeled his company’s “seventh line of business” — government relations.

The business of better influencing Washington, begun in late 2007, was jump-started just as the financial crisis hit and the capital displaced New York as the nation’s money center. Then Mr. Obama’s election brought to power Chicago Democrats well-known to Mr. Dimon from his recent years running a bank there.

One of them is Mr. Emanuel, who has accepted the invitation to speak to the board pending a review by the White House counsel. The Treasury secretary, Timothy F. Geithner, declined out of concern that he would be seen as too cozy with a company that has numerous business issues before the department, an administration official said.

“It’s a very nice thing for the board to have happen,” said the chief of a major financial company. “But you’d have to have a lot of influence to pull it off.”

Mr. Dimon and his company enjoy a prominence in the city’s K Street lobbying world that parallels their recent rise on Wall Street; JPMorgan went into the crisis stronger than most rivals and reported robust quarterly gains last week that confirmed its place at the top of the heap.

With the crisis, Mr. Dimon, a longtime Democratic donor, has become even more politically engaged, in the process becoming perhaps the most credible voice of a discredited industry. Other onetime giants like Citigroup and Bank of America find themselves muted as wards of the state.

JPMorgan gave back its bailout money quickly, though like all the country’s big banks it still benefits from government loan guarantees and lending facilities.

He is “one of the few Democratic C.E.O.’s in that line of work,” said Representative Barney Frank, the Massachusetts Democrat who heads the House banking committee. “And look, he’s been less impaired by failure than some of the others, so that’s given him a kind of lead role.”


Ah, Barney neglects to mention that JPMorgan was "less impaired" because they were gifted Bear Stearns and Washington Mutual.

This all started under Bush's watch, so there is also some Republican connection, but Dimon is a big D Democrat, big time tied to Obama. There's no way you can't make the connection , unless you think Rahm Emanuel is going to end up at the shareholder meeting of company where you hold stock.

If you can take it here's more from NYT:

Another Obama associate is on JPMorgan’s payroll. Mr. Dimon hired William M. Daley, a former commerce secretary and Chicago powerbroker, in 2004 as vice chairman and head of Midwest operations. Since 2007, Mr. Daley has overseen global government relations.

It was at that time that Mr. Dimon assessed his own performance for his board and gave himself a “D” for effort in Washington. He subsequently revamped the firm’s government affairs office, mindful of Democrats’ ascendance: They had won control of Congress and were favored to seize the White House in 2008.

He met the future president during Mr. Obama’s 2004 Senate run, at a living room discussion with about 10 pro-business Democrats, and sent his campaign $2,000, the maximum.

Now that Mr. Obama is in the White House, Mr. Dimon has been prominent when the president wants to talk to big business.

During one such meeting in late March, as Citigroup’s chairman, Richard D. Parsons, was trying to explain banks and lending, the president interrupted with a quip: “All right, I’ll talk to Jamie.”

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

http://www.huffingtonpost.com/2009/03/27/obama-seeking-jpmorgan-go_n_180001.html

http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html

http://www.nytimes.com/2009/07/19/business/19dimon.html

http://www.zerohedge.com/article/estimating-jp-morgans-profits-bernie-madoff-483-million

http://globaleconomicanalysis.blogspot.com/2009/08/survival-of-biggest.html

http://www.bloomberg.com/apps/news?pid=20601109&sid=agFM_w6e2i00

Suggested..

http://www.financialexpress.com/news/the-jp-morgan-twist-to-the-madoff-scandal/416816/0

http://seekingalpha.com/article/159000-goldman-sachs-s-hedge-fund-report-a-must-read



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