The nine billion dollar whistleblower

A year ago, the U.S. Department of Justice announced a $9 billion settlement with JP Morgan Chase to settle a case of securities fraud.

The $9 billion was the price paid for not going to trail, and not hearing the testimony of whistleblower Alayne Fleischmann, which was a bargain, because the market value of the bank’s stock rose by more than that amount when the settlement was announced.

Fleischmann was a deal maker for JP Morgan Chase who warned her superiors back in 2008 that the bank would be guilty of securities fraud if it sold risky mortgage-backed securities based on false  information.

She was brushed off and lost her job.  She contacted the Securities and Exchange Commission, Department of Justice and other authorities and also was brushed off.   But she is determined to bring out the facts anyway, despite the legal risk of violating a confidentiality agreement and the certainty of being blacklisted from working on Wall Street.

“The assumption they made is that I won’t blow up my life to do it,” she said.  “But they’re wrong about that.”  Matt Taibbi told her story in the current Rolling Stone.

LINKS

The $9 Billion Witness: Meet JP Morgan Chase’s Worst Nightmare by Matt Taibbi for Rolling Stone.

Matt Taibbi and Bank Whistleblower on How JP Morgan Chase Helped Wreck the Economy, Avoid Prosecution, the full Democracy Now broadcast with transcript.

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One Response to “The nine billion dollar whistleblower”

  1. prayerwarriorpsychicnot Says:

    Reblogged this on Citizens, not serfs.

    Like

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