Later On

A blog written for those whose interests more or less match mine.

Profiteering on Banker Deaths: Regulator Says Public Has No Right to Details

leave a comment »

Something very odd is going on the banking industry. Pam Martens and Russ Martens report in Wall Street on Parade:

A man with a long history of keeping big bank secrets safe from the public’s prying eyes has denied the appeal filed by Wall Street On Parade to obtain specifics about the worker deaths upon which JPMorgan Chase pockets the life insurance money each year.

According to its financial filings, as of December 31, 2013, JPMorgan held $17.9 billion in Bank-Owned Life Insurance (BOLI) assets, a dark corner of the insurance market that allows banks to take out life insurance policies on their workers, secretly pocket the death benefits, and receive generous tax perks subsidized by the U.S. taxpayer. According to experts, JPMorgan could potentially hold upwards of $179 billion of life insurance in force on its current and former workers, based on the size of its BOLI assets.

The man who denied Wall Street On Parade’s appeal is Daniel P. Stipano, who told us by letter on June 20, 2014 that he had 450 pages of responsive material but it was not going to be released to us or the public. (See OCC Response to Appeal from Wall Street On Parade Re JPMorgan Banker Death Bets.)

Stipano is, by title, the Deputy Chief Counsel of the Office of the Comptroller of the Currency (OCC), the U.S. regulator of national banks, including those that were at the center of the 2008 financial collapse, mortgage and foreclosure frauds, and which continue to violate the nation’s laws with regularity. According to Stipano’s current bio, he also functions as the supervisor of the OCC’s Enforcement and Compliance, Litigation, Community and Consumer Law, and Administrative and Internal Law Divisions. That’s a lot of hats for one man to wear at a regulator of serially malfeasant mega banks.

Stipano also appears to be the decider-in-chief when it comes to Freedom of Information Act (FOIA) requests to the OCC. He also functions as a key decision maker when it comes to denying documents to U.S. Senators to allow them to perform their oversight duties. (One would certainly think that a Federal regulator would establish an independent office to handle FOIA and Congressional information requests.)

Stipano is the man who played an outsized hand in the scandalous structure of the “Independent Foreclosure Review,” where the major Wall Street banks who had illegally foreclosed on families were allowed to hire their favorite, deeply conflicted consultants to review the foreclosure files for wrongdoing, set the terms of the consulting contracts and pay out $2 billion to the consultants before homeowners had received a dime — and a year had been wasted on bogus reviews.

The end result of that hubris, as Senator Elizabeth Warren revealed last year, was that the actual banks engaged in the illegal foreclosure activities, not the so-called Independent Foreclosure Review consultants, were allowed by the OCC to tally up and classify their own wrongdoing.

One of the “independent” consultants that the OCC rubber-stamped for hire by the banks was Promontory Financial Group. As Wall Street On Parade reported in April of last year: . . .

Continue reading.

Read the whole thing. I’m hoping that Senator Warren will look into this.

Written by LeisureGuy

30 June 2014 at 8:33 am

Posted in Business, Law

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.