Photo of Obama Robbing Hood and one of his merry band of socialists
“They who would give up an essential liberty for temporary security, deserve neither liberty or security.” ~ Benjamin Franklin
The 2008 economic collapse is being used by the Obama Administration to rob private corporations of earned profits so the government can redistribute the money to their favored constituents. The JP Morgan Chase settlement announced today is one such deal.
The DOJ forced a $13 billion dollar settlement on JP Morgan Chase investors this week, investors that include unions, seniors, and average working people. The settlement creates a more threatening relationship by government towards private corporations.
Usually governments try to attract investment and encourage an environment in which private companies thrive, which in turn leads to economic growth, innovation, jobs and profits. The more predictable the environment, the more worthwhile the investment and risk for companies.
The JP Morgan settlement does the opposite.
The Obama Administration has been disrupting the relationship between government and private business for the last five years. The government abandoned investors for their favored unions in the auto bailout despite agreements to the contrary, they have given unearned grants and subsidies to Obama bundlers in the solar industry, they have bullied guitar companies, and have threatened insurance companies.
The recent forced settlement with JP Morgan Chase is more of the same and epitomizes the new relationship between companies and the government. The government is now in control of private corporations when it chooses to be in control. The government now has the right to steal private property under the guise of fines, retribution, and criminal prosecution.
The government can beg you to buy up entities to save the country from economic collapse as they did with JP Morgan and then fine you for it.
Banks are easy targets and they now serve as another ATM for the government.
No one feels sorry for bankers and their investors.
Banks have also been demonized successfully by this administration, making them easy pawns. They are bearing the full weight of responsibility for the housing collapse that was caused in large part by Fannie and Freddie and the government’s penchant for forcing banks to give mortgages to lower-income people who can’t afford them.
A couple years ago, Stephen Lerner of SEIU was caught on tape talking to a packed crowd about the planned destruction of capitalism.
Audio of the meeting:
To paraphrase, Lerner said that they needed to focus on the vulnerable targets, namely the banks, and more specifically J.P. Morgan Chase. Lerner mused that charges such as foreclosures could provide a good basis for this attack. Read about The Plan to Destroy Capitalism at Business Insider
Within days of the tape’s release, mobs of people shut down Chase banks throughout the country.
Attacks on banks is something this Administration also engages in, and not in an insignificant way, and Chase is their prime target as well.
The $13 billion dollar settlement agreed to by JP Morgan Chase was retribution for the economic collapse of 2008 – supposedly.
At the time of the 2008 collapse, JP Morgan was asked by the US government and Treasury Secretary Hank Paulsen to buy WAMU and Bear Stearns to stave off colossal systemic failure.
“Bear Stearns would have gone down if JP Morgan hadn’t acquired it,” Henry M. Paulson Jr., the former Treasury secretary, said in October on CNBC. “If that had happened, it would have been a real disaster,” said Mr. Paulson, who helped oversee both deals.
The government acknowledges that it urged Chase to buy the two banks.
Hank Paulson said that even though JP Morgan was “begged” to make the Bear Stearns and the WaMu acquisitions, the government did not make any guarantees on legal liabilities. “Jamie knew that at the time,” Paulson said.
Others remember it differently. JP Morgan was promised that if they bought WAMU and Bear Stearns, they would not pay for the crimes committed by the two entitites.
Whatever the case, JP Morgan must now give $13 billion to the government for crimes committed primarily by WAMU and Bear Stearns. About 80% of the liabilities/mortgages were in fact owned by the two companies and not by Chase. Chase said that the FDIC backed the mortgages and bears the responsibility.
The government rejected that argument. They have unlimited access to taxpayer funds while Chase has to use profits to continue the legal case. JP Morgan settled instead.
The government is using Chase as an ATM. They will take $2 billion of the settlement for themselves and another $7 billion for investors.
An astounding $4 billion is to be redistributed to people with underwater homes and to people facing foreclosure. It is a Marxist style theft – redistribution – in the name of justice and retribution.
The neighborhoods that will receive the billions are not yet known but they will undoubtedly be Obama’s favored constituents.
There already has been a $25 billion national mortgage settlement over foreclosure abuses.
This will have no end.
The government plans to do the same with the other major banks, Bank of America, Wells Fargo, and Citigroup.
The government is regulating the profits of banks, taking the money, and redistributing it to those they deem less fortunate or more worthy.
The Wall Street Journal wrote recently: The JPMorgan settlement “needs to be understood as a watershed moment in American capitalism. Federal law enforcers are confiscating roughly half of a company’s annual earnings for no other reason than because they can and because they want to appease their left-wing populist allies.”
Obama once described Jamie Dimon, CEO of JP Morgan Chase and a Democrat and former Obama bundler, as ‘the smartest banker we got.’ At least that was until Dimon criticized Obama and his handling of the economy on the lead up to the 2012 election.
Dimon told Fortune that “American business has added 4 million jobs in the last 24 months,” but he didn’t think “government had anything to do with it.”
He was disappointed in the government’s response to the recession and said that though, “we have the royal straight flush,” we’ve “demoralized ourselves.” He said “the debt-ceiling crisis, the failure to do Simpson-Bowles, [and] what I consider the constant attack on business” to be the three main things that have hamstrung the recovery, “hurt[ing] consumer and business confidence.”
Speaking to a panel about the prospect of 1 million veterans returning from Iraq and Afghanistan to the work force, Dimon said, “You’re damn straight we could accommodate 1 million [returning troops],” thanks to America’s resilience, but “four years after the crisis, we still haven’t fixed the mortgage market.”
Dimon ridiculed the administration’s boast of having created 4 million jobs — “it should have been 8 million.” Read more at Newsmax.
It was shortly after these comments that the DOJ set its sights on JP Morgan Chase.
Chase will survive. They have set aside $28 billion to cover the costs, but the real point is that this is an attack on capitalism. This is the new, somewhat Marxist style our government is using to deal with private corporations.
Mr. Obama is currently using the FHA like the government once used Fannie and Freddie – to buy homes for those who can’t afford them. It’s all part of the social engineering program and it could set us up for another housing bubble.
Theft from the rich to help the poor, deserving or undeserving, is still theft.