Dan Majestic reports from Washington: A funny thing has happened to one of the biggest banks in the US, JP Morgan. It’s going to be fined $13 billion for plugging dodgy financial products, backed by toxic sub-prime mortgages, and contributing to that giant financial crash that had happened in 2008.
The agreement, as we are told, was reached by the top two dogs in JP Morgan, Jamie Dimon and Stephen Cutler, and US Attorney General Eric Holder, the one who had ordered his people not so long ago to confiscate the phone records of hacks from the Associate Press, to find out who their sources were.
Some overly excited people have already started to bang on about the largest ever fine imposed on an American bank and about the supposedly ‘no-nonsense approach’ by the Obama Administration to punishing the banking sector for the mess it has created six years ago. Which is hilarious really, because the money men in America call the shots and run the so-called ‘central bank’, the US Federal Reserve, which is now printing new money like mad – $82 billion a month actually – to prop up the banks and help the markets makes a healthy profit at the expense of the nation.
So what’s going on then? Well, it’s all a distraction, this so-called ‘punishment’ of JP Morgan by Big Brother. Because, for one, $13 billion for JP Morgan is like $130 for a small company, with the banks having made trillions on selling dodgy financial products in the run up to the crash. And, secondly, why would only one bank get fined? Why forget about Goldman Sachs and many, many others? Why not hit them each with something like $100 billion in fines, to make it work for the long suffering taxpayers, and redirect the newly printed money from the markets where banks rule to the real economy. Now that would be something!
But it won’t happen, of course. Because it’s not the White House and the US Congress that decide how the economy is run in America, it’s the people based in Wall Street. So the farce with JP Morgan will be a limited exercise and eventually the bank will recoup the fine and everything would get back to normal again. Because the free market that America likes to boast about is free for a limited number of people and companies. Mostly involved in the financial sector.