Additional questions for Jamie Dimon

Questions for Jamie Dimon that no Member of Congress had the Courage to Ask

Your own employees, Donna Dellosso and Barry Zubrow, witnessed those transfers and were so concerned about them that they immediately requested a letter from Jon Corzine and Laurie Ferber, basically stating that they were not stealing customer money. You never got that letter, but kept the money anyway. Weren’t you concerned about receiving stolen property, and potentially being an accessory to the looting of customer accounts? Did you call the CFTC or SEC to report your suspicions?

[Mr. Dimon told the Senate Banking Committee that his bank received verbal assurances that the transfer was legitimate; however the Giddens report directly contradicts this………see page 134: MF’s in-house attorney, Dennis Klenja, “advised that he made no assurances of any kind to JPM”.]

JP Morgan was MF Global’s primary banker. You knew that they were scrambling to come up with cash to stay alive, day-by-day, hour-by-hour. Did you really think that they suddenly found a couple of hundred million dollars of excess cash in the segregated account? Or did you watch them steal customer money for a JPMorgan account,  and then ask for the letter as a CYA in case they got caught?

2) Last month, your bank returned approximately $168 million in funds to the MF Global estate, money that you had been holding for over 7 months. Mr. Giddens believes that JP Morgan is still holding on to money that rightfully belongs to MF Global, and stated in his report that he will be suing you if no agreement to return the money is reached within 60 days. Are you aware of that? Can you tell us here today how much MF Global money is still being held by your bank?

Do you have systems and controls in place to identify what money belongs to you and what money belongs to your customers?

Millions of people have custodial accounts at JPMorgan for their retirement funds or their children’s education. Should they be worried about their funds being commingled with the bank’s own funds?

It seems that JPMorgan has a habit of commingling its own funds with customer segregated funds. Weren’t you fined 33 million pounds in the UK last year for failing to properly segregate $23 billion in client assets? That improper commingling took place over a period of 7 years, correct? And isn’t it true that in April of this year the CFTC ordered you to pay a fine of $20 million to settle charges that JPMorgan mishandled segregated customer funds at Lehman Brothers between November 2006 and September 2008? The CFTC also stated that after Lehman Brothers filed for bankruptcy, JPMorgan improperly declined to release customer segregated funds linked to commodity accounts.

Is that your modus operandi, Mr. Dimon, when a customer of the bank seems headed for bankruptcy to grab onto as much cash and collateral as possible, and then only release it after being sued or ordered to return it by regulators?

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