As the US stumbles into the new week of shutdown and futures this Monday morning show triple digit decline on the Dow Jones, there is still no word on JPMorgan’s global settlement for crimes against individual investors.
The shutdown may have a smaller effect on the SEC than most other federal agencies, due to the fact that they are somewhat self-funded, through the surcharge they get on every trade made.
Still we are a week out of JPMorgan’s CEO Jamie Dimon being “perp walked” down to Mary Jo White’s offices for discussions on what charges will and will not be included in the settlement and whether criminal charges will be brought against the firm, ala SAC Capital Advisors.
News late last week came out that Dimon had relinquished his role of chairman of the JPM banking unit on June 30th of this year was met with tepid coverage, despite it signalling a thwarted attempt at appeasement to shareholders and regulators over the Whale trade.
Given the new SEC stance on admittance of guilt when settling charges, the delay could be in language over who will admit to wrongdoing. The company for sure, but are the feds — including the Dept. of Justice as well as the SEC — looking for Dimon’s scalp?
A thought could be that JPM’s head of commodities, Blythe Masters, may be the sacrificial exec the feds will take.
Not sure anyone in Washington wants to see a neutered JPM leadership as we slow march towards debt crisis.
Treasury and the Federal Reserve might need familiar faces around the conference table on a Sunday morning in the near future to help settle cratering markets as the ceiling comes down.
So figure any announced settlement will come after the debt ceiling crisis is resolved.