Later On

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

The Mafia and Wall Street: Parallels and possible partnership

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Pam Martens in Wall Street on Parade notes:

Every now and then, someone raises the question of Mafia infiltration on Wall Street or suggests that Wall Street has become an Ivy-league educated, better tailored version of the mob. Now, two lawyers, Helen Davis Chaitman and Lance Gotthoffer have dramatically ratcheted up the debate, suggesting boldly in the latest chapter of their free on-line book that there are stark parallels between the Gambino crime family and JPMorgan Chase – the nation’s largest bank.

Writer Matt Taibbi had a similar epiphany back in 2012 in an article for Rolling Stone titled The Scam Wall Street Learned from the Mafiathe story of how major Wall Street firms conspired together to rig bidding in the municipal bond market. Taibbi writes: “In fact, stripped of all the camouflaging financial verbiage, the crimes the defendants and their co-conspirators committed were virtually indistinguishable from the kind of thuggery practiced for decades by the Mafia, which has long made manipulation of public bids for things like garbage collection and construction contracts a cornerstone of its business.”

In 2009, the book, Nothing but Money by New York Daily News reporter Greg B. Smith was released, detailing actual Mafia infiltration in stock pump and dump schemes on Wall Street, albeit at small firms. That was preceded in 2003 by Born to Steal: When the Mafia Hit Wall Street by long-time business writer and author, Gary Weiss.  The Weiss book took an in-depth look at Mob-run stock brokerage firms selling phantom stocks by following the career of one of the stock swindlers, Louis Pasciuto, who eventually turned state witness.

But what attorneys Chaitman and Gotthoffer are doing is extraordinary and unprecedented. They are asking the public to seriously look at the parallels between the Mafia and JPMorgan Chase, a bank holding over $1.7 trillion in Federal Reserve assetsand more than $1.3 trillion in deposits, the bulk of which are insured by the FDIC and ultimately backstopped by the U.S. taxpayer.

Chaitman is a nationally recognized litigator and author of The Law of Lender Liability. She is also a Bernie Madoff victim who lost a large part of her life savings to his Ponzi scheme and then tenaciously represented other victims of his fraud in district and appellate courts. Chaitman has teamed up with fellow attorney, Lance Gotthoffer, to conduct an exhaustive investigation of the intersection of the Madoff fraud with the bank that was criminally charged by the U.S. Justice Department in the matter – JPMorgan Chase. (The bank signed a deferred prosecution agreement and paid $1.7 billion to the Madoff victims’ fund to avoid prosecution.)

The book is titled JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook. The authors are releasing a new chapter of the book each month as well as a quick means of contacting your legislator in Washington to urge Congress toact in the interests of the American people, not in the interests of the financial institutions that are rich enough to make significant contributions.”

The latest chapter looks at the culture inside JPMorgan and provides a detailed portrait of some of the main insiders: among them, . . .

Continue reading.

Written by LeisureGuy

19 November 2014 at 9:37 am

One Response

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  1. Reblogged this on Citizens, not serfs.

    prayerwarriorpsychicnot

    19 November 2014 at 5:30 pm


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