JPMorgan (NYSE:JPM) is in the news again. Finally some charges or something or other are about to be laid. But the regulators are going after some small fish. The Board of Directors untouched. Jamie Dimon the CEO has all his Teflon intact. Bruno Iksil the London Whale has slithered out. Neither Ina Drew, the bank’s former chief investment officer, nor Achilles Macris, a former top Chief Investment Office executive have been charged.
The regulators want to lower level operatives. Two former JPMorgan traders – Javier Martin-Artajo and Julien Grout are the targets “du jour” Minnows not whales.
By charging the most senior members of JPMorgan the regulator would face blow back over their ineffectual role. Everyone is innocent until proven guilty. Defense lawyers say what they need to say to get their clients off. The regulator cannot get a clean “Kill Shot” so its taken an Uzi and is spraying a few small fish to make it look good.
Regulators are political animals and savvy as to the way of bureaucracy. They have no interest in suicidal confrontation where they end up wearing it.
Obama for all his chagrin with Wall Street may end up giving Jamie Dimon an ambassadorship just to neutralize him and his cohorts.
George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti . One piece of advice to one and all. Never walk in front of the snipers rifle.