“News that JPMorgan Chase would pay a $13 billion fine, the largest government penalty levied on a single company, initially led to calls that CEO Jamie Dimon should step down.
“That’s not going to happen. Board members have rallied around Dimon. What’s more, it’s unlikely that Dimon had any direct involvement in the troubled mortgage deals. In fact, he warned his executives about the dangers of subprime loans.
“But what about the investment bankers who were involved in underwriting and selling the dubious mortgage deals that led to the massive penalty? They appear to be doing just fine as well. Indeed, until last month, three of the top bankers responsible for the deals still worked at JPMorgan (JPM). One appears to have received a promotion.
“A check of Duzyk’s records on the Financial Industry Regulation Authority’s website doesn’t show that he is the subject of any government investigations. He is listed as a defendant in two pending civil suits related to past mortgage deals.
“‘There has to be accountability for both the banks and the individuals who were putting together these deals,’ says Dennis Kelleher, who runs Better Markets, which has argued for increased regulations of banks and Wall Street. Kelleher has criticized the JPMorgan settlement for, among other things, providing relatively few details about the behavior for which JPMorgan is paying the massive fine. ‘Without full disclosure of the crimes or individual accountability, settlements like these continue to reward and incentivize illegal conduct.'”
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