Date Published: May 27th, 2015

Breaking News Worldwide.
Another big bank scandal and failure to America, Britain, Scotland, Switzerland, the world economy’s customers and communities.

J.P. Morgan Chase again, this time from the frying pot and into the fire.

Question: Can J.P. Morgan Chase and other global banks continue to prostitute the banking profession and practice by criminal conducts and behavior of their “directors” with impunity in the eyes of the U.S. government, British, Scotland, Switzerland, and the worldwide banking professional institutions without been severely punish, to set as an example and to deter other banks worldwide from unethical business practices?

Please read and share your views. According to news publication: “Now we know: J.P. Morgan Chase is worse than Enron” by Richard Eskow, campaign for America’s future/news analysis.

The publication stated in parts: “It’s beginning to look as if J.P. Morgan Chase has every major banking scandal of the last decade”… Click on the links below to read more about the story and other issues.

But first, based on my professional knowledge and experience in banking and finance, the evaluation of the banking system and its weaknesses has not changed for the better in creating a better banking system and practice compared with what we are witnessing today in the financial industry with institutions (banks) practices in America and in many other parts of the world. For example: despite the Federal Reserve Act of 1913, the National Bank Act to restore confidence in the banking system that fell short of solving all the attendant problems and the few that were left, and after the great depression in 1929, the American economical base of the financial institutions and market is still at a blink and downwards trend because of the banking practice of the so-called big banks unethical practices from what we are seeing today. J.P. Morgan Chase and other banks alike being: Bank of America, Citigroup, and Wells Fargo are no exception for their mafia type of organized crime syndication against Americans: such as bank fraud which includes foreclosure fraud, investor fraud, cheating of customers, and market manipulation.

According to another article publication headline on May 20th, 2015: “Five Global Banks to pay $5.7 billion in fines over rate rigging,” The article stated in part: “The J.P. Morgan Chase, Citigroup, Barclays and The Royal Bank of Scotland conspired with one another to fix rates on U.S. dollars and Euros traded in the global market for currencies, according to a resolution announced Wednesday between the banks and the U. S. Department of Justice. A group of currency traders, who called themselves “The Cartel,” allegedly shared customer orders through chat rooms and used that information to profit at the expense of their clients. The resolution is complex and involves multiple regulators in the U.S. and overseas.” The question is: $5.7 billion in fines really enough, when these banks conspired with one another to fix rates on U.S. dollars and Euros traded in the global market for currencies, between December 2007 and January 2013? Click on the link below to read the full text and continue reading my article:

In my view and personal opinion, there is little confidence if any more that the American people and people around the world would have on big banks in America and other banks around the world, particularly on these five banks. The fact is that most of these banks have shifted from the fundamental principles and banking practice which includes but not limited to:Banks are a fundamental part of the economy through the payment system, banks facilitate the flow of money throughout the United States and around the world effectively and efficiently, and without this system, the global economy would collapse. Example: the great depression in 1929 when the financial market crashed.Banks provide customer service, and it is the expectations of customers that bank employees be credible, trustworthy, and assist them with resolving problems, provide appropriate suggestions, and not misled them.Banks contribute to the community in such that bank employees are to visibly be active in all aspects of community life including: providing a safe and convenient place for customers to take care of their financial needs. When banks do their jobs well with honesty and integrity, they are able to help build strong communities, help families grow, educate children, help develop businesses, and generally improve society and the quality of life.Question:  Can any reasonable person look at some of the big banks in America like J.P. Morgan Chase, Citigroup, Wells Fargo, Bank of America to state a few, and those involved in this mafia criminal act, and others around the world with “Bank Directors” conduct, behavior, and practices, and say they are consistent with the fundamental principles of banking and its practice?

Question:  Is a $ 2 billion fine on J.P. Morgan Chase enough for closing our eyes and covering up as Bernie Madoff literally broke up families, along with lots of other businesses, charities, and organizations?  For Example see: J.P. Morgan Chase’s Total Assets (Quarterly):2.577T for March 31, 2015 alone:

If I am asked about my honest opinion in regards to this matter, I will say the U.S. government ant the other governments across the globe involved need to do more in punishing these financial institutions because J.P. Morgan Chase and the other banks are corporate structures. In the context of how a bank is structured: The bank is a business organization; a typical bank has a corporate structure. It is a legally chartered business venture, operated for profit with stockholders, directors, and officers, just like any corporation. The bank’s stockholders, elect its directors, who are the active governing body of the corporation. Directors are responsible for the bank’s operations, regulatory compliance and performance; they can be held legally liable for their actions. Directors appoint bank’s officers. The board of directors’ usual functions through various committees, such as auditing, trust, and credit. The bank’s chairman of the board often is the chief executive officer, who is responsible for the basic policies that guide the institution. The bank’s president is typically the chief administrative officer, responsible for implementing policies and supervising operations. Depending on the size and scope of the institution, various organizational levels may be created so that specific individuals are responsible for functional areas.

In the light of the foregoing, and being that J. P. Morgan Chase and the other banks are a corporate structure, they are legally liable, and being structured as big financial institutions. The U.S. government, Britain and the other countries involved, in my view and personal opinion, and as well as any reasonable person, I believe would have expected at least a trillion of dollar in fines on J.P. Chase Morgan and the other banks each if not more for the amount of interest that very likely these banks have made in trading their clients’ money in currency exchange and market turnover while trading their clients’ money unlawfully and at their clients’ expense, but for their own personal interest and gain. There are tens of thousands of questions if not more that any reasonable person can ask about these bank corporate structures and their directors’ conducts and behaviors which are unacceptable in banking practice, and indefensible under the rule of law, in any civilized society.

The question is did the director in each of these banks behave as a reasonable person would have behave? I don’t believe so. Are the entire corporate structures of these five big banks: honest, trustworthy, and credible and their integrities consistent with their financial institutions’ mission statement stated? Where their conduct and behavior in good faith or in bad faith? Do they know that the higher you go, the more visible your integrity or lack of it becomes known? Would the top leaders in these financial institutions claim innocence of the conduct and behavior of their directors? That won’t be a valid excuse and my observation is that nothing more and nothing less, but leadership problems, which are the most common problems in our society today, worldwide, and in all works of life.

The most important responsibilities and duties of leadership and in all works of life that are mostly ignored or neglected are (delegating tasks, monitoring said tasks consistently, and evaluation of performances in a timely manner). If the bank top leaders claim innocence of the conspiracies of the directors, in my honest opinion that means they were not performing their duties and responsibilities effectively. If leaders in any organization like these financial institutions for example, failed to performed their duties efficiently, including delegating task to team members according to their strengths and developmental needs, and failed to monitor and evaluate performances in a timely manner, undoubtedly things would go wrong without knowing to the leaders, and by the time it come to their knowledge it would have already caused extensive amounts of damage which could be beyond repair on the reputation of the financial institution, credibility of the organization or institution and create a cloud of mistrust with and amongst anyone who deals with said institution.

Leaders should take responsibility for their own actions of failing to perform their duties effectively and efficiently and in a timely manner. There is no exception under the rule of law for failing to perform their duties and carrying their responsibilities as expected of them. Consequently, the financial institutions are held liable for the conduct and behavior of the employees. This type of conduct in most cases and situations are considered as negligent  on the part of the top leaders for failing to stop the malpractice and correcting the situation, but allowing it to become a continuous practice and cause losses and damages to the governments and bank clients because the entire corporate structure knew, or should have reasonably known that their directors’ conducts or behaviors in operations were not in the best interest of the financial institutions and should have taken proactive action and correct the conducts of the banking directors’ operations that were unethical banking practices.

So there is no exception for the five big banks involved in this financial criminal conducts, they all failed to behave as a “Reasonable Person” (Reasonable Man Theory) applicable in law of the decision whether an accused is guilty of a given offense might involve the application of an objective test in which the conduct of the accused is compared to that of a reasonable person under similar circumstances. I believe J.P. Morgan Chase and the other banks are composed of highly educated professionals and skilled corporate structured staff that should have conformed to ethical business practices in compliance with the U.S. and the other countries’ financial regulations in conformity with the worldwide professional institutions of bankers’ ethics and practices. As a result, there is reasonable cause to believe J.P. Morgan Chase and the other four banks are guilty of the criminal conduct and charges by the U.S. prosecutors and liable for the damages.

Consequently, J.P. Morgan Chase and the others banks agreed for a settlement which is hopefully the beginning of correcting the banks dubious financial malpractice if J.P. Morgan Chase and the other banks would deceit forthwith to avoid further and more severe punishment that undoubtedly would cripple the banks involved financial market credibility. It is seemingly the beginning of the government taking corrective actions and punishing those involved in corruption, destructive, and dishonest practices in society to deter others from doing the same. I was a victim in the housing market under J.P. Morgan Chase’s mortgage bad and incompetent staff and management, and we are all watching the situation, as very likely for a class action lawsuit will follow before the statute of limitation expires.

In law generally, to know your rights is extremely important, and among all things in law that I will say even if you are not a lawyer, to argue your case in court, but it imperative and incumbent upon you whether you are the plaintiff or defendant to know and be able to understand these two most important things for your rights to sue and win you case, and these are: CAUSE OF ACTION and NEGILENT. If you can prove these two things and have a witness to support your case, be it a Tort, Criminal Law, Civil Rights, etc, you will win your case. These are theories in law that are commonly used and applied in matters of law. Even if you are not a lawyer, but if you understand how to apply these theories and hypothesize you situation in matters having to do with court action, you can use these two theories to determine whether or not you have the right to sue and win your case, or win the case as the defendant before you can even find a lawyer.

Most experienced lawyers won’t take cases that lack cause of action and negligent. Remember, most lawyers you pay them when you win, and you pay a third of the amount you collect from the case, plus their office administration cost. Even if you lose, most lawyers would ask you to pay their office expenses, while there are some lawyers that are reasonable and kind, who can reduce their office costs, or even ask you not to pay their office cost. Remember that the yardstick most lawyers and judges use in court cases to determine matters of law is: A cause of action. A cause of action is a claim in law and fact sufficient to demand judicial attention. It is the composite of facts necessary to give rise to enforcement of right. A right of action is the legal right to sue. If the complainant fails to state a proper cause of action, the complaint will be dismissed. For example: Negligent, is cause, a right in law to sue.

For instance, in the case of J.P. Morgan Chase and the other banks, the practice was in dishonesty such as: bank fraud which included foreclosure fraud, investor fraud, cheating of customers, and market manipulation. All these alleged allegations as facts that give rise to right of action to sue the banks “Cause to be dishonest.” The bank officers knew or should have reasonable known that the bank “directors” operations were inappropriate and were of illegal practices, and should have corrected the situations but failed, and their dishonest practices caused the victims to suffered losses in foreclosure fraud, investor fraud, being cheated out of earnings are customers/clients, and market manipulation. On the other hand, the defendant can use these two theories as a guide, to watch its directors and all staff in their work and avoid breaking of the laws by following the true and correct bank operations, knowing the liabilities for its cause of action and negligent if it violates the law.

Most leaders in higher level and those in supervision organizations either neglect these guides or simply don’t know, and because of their ignorance can cause their organizations or institutions’ losses from fines, lawsuits, and liability damages. It is advisable to always seek professionally advice from businesses, management, and law institutions, to avoid fines and possible lawsuits in the billions of dollars like these five banks.

James A. Koroma Sr. CMA. MBA. BSc. AIB. AMA
Chartered/Certified Marketing Analyst, Business & Management Consultant.

Watch out for my next article and publication on: (The world problems, and world leaders, the failure and corrective measures needed for peace and international security). The Truth!!