Matt Taibbi Returns to Rolling Stone…Publishes New Article about the “$9 Billion Witness” Who Is JPMorgan Chase’s Worst Nightmare

By Elaine Magliaro

The honeymoon didn’t last long for Matt Taibbi at First Look Media. News broke last week that the investigative journalist had left the news organization and had returned to Rolling Stone, the magazine where he had previously worked for fifteen years. Glenn Greenwald, Laura Poitras, Jeremy Scahill, and John Cook wrote an article about Taibbi’s leaving in their article titled The Inside Story of Matt Taibbi’s Departure from First Look Media over at The Intercept.

Taibbi joined First Look Media last February. He was supposed “to lead a digital magazine at the company that was going to be called Racket.” According to Tom Kludt of Talking Points Memo,  “Taibbi’s seven months at First Look were stormy, and ended amid ongoing tension with higher-ups.”

Fans of Taibbi will be happy to know that he returned to Rolling Stone with a big story about “Alayne Fleischmann, the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking.”

Here’s a link to Taibbi’s Rolling Stone article: The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

Excerpt from Matt Taibbi’s article:

Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as “massive criminal securities fraud” in the bank’s mortgage operations.

Thanks to a confidentiality agreement, she’s kept her mouth shut since then. “My closest family and friends don’t know what I’ve been living with,” she says. “Even my brother will only find out for the first time when he sees this interview.”

Six years after the crisis that cratered the global economy, it’s not exactly news that the country’s biggest banks stole on a grand scale. That’s why the more important part of Fleischmann’s story is in the pains Chase and the Justice Department took to silence her.

She was blocked at every turn: by asleep-on-the-job regulators like the Securities and Exchange Commission, by a court system that allowed Chase to use its billions to bury her evidence, and, finally, by officials like outgoing Attorney General Eric Holder, the chief architect of the crazily elaborate government policy of surrender, secrecy and cover-up. “Every time I had a chance to talk, something always got in the way,” Fleischmann says.

This past year she watched as Holder’s Justice Department struck a series of historic settlement deals with Chase, Citigroup and Bank of America. The root bargain in these deals was cash for secrecy. The banks paid big fines, without trials or even judges – only secret negotiations that typically ended with the public shown nothing but vague, quasi-official papers called “statements of facts,” which were conveniently devoid of anything like actual facts.

SOURCE

Taibbi Returns To Rolling Stone With Piece That Was ‘Supposed To Launch’ New Site (Talking Points Memo)

 

 

 

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25 Responses to Matt Taibbi Returns to Rolling Stone…Publishes New Article about the “$9 Billion Witness” Who Is JPMorgan Chase’s Worst Nightmare

  1. The sad part is, nobody is going to pay attention. Like the little video of the street interviews with college students I posted in another thread, the people who need to pay attention the most, don’t. But they can name the sequential spouses and latest scandals involving pop entertainment airheads without hesitation.

  2. buckaroo says:

    Lets face it, this administration is in cahoots with Wall Street. The people are tired of this pointing the finger to impress. Thus ……………

  3. Let’s face it. The Bush Administration brought us TARP and the Obama Administration refused to prosecute Wall St. criminals so when it comes to Wall St. there isn’t a dimes bit of difference between either major party. The only thing that could be worse is no regulation of business at all.

  4. Elaine M. says:

    Gene,

    I lost faith in President Obama early on after he named Larry Summers as an economic adviser and nominated Tim Geithner for Treasury Secretary.

  5. Obama had an unprecedented opportunity to be a great president. Trying to look on the bright side, had there been another Republican in office, we would not have had the Supreme Court appointments he made. We would have gotten more in the mold of Alito/Roberts/Scalia/Thomas.

    I am old enough that it won’t matter to me personally who gets in office. However, I do despair for my grandchildren. FWIW, my granddaughter married a Canadian, and plans to emigrate to Canada. She likes Canada much better, saying both public and private spaces are better maintained, excellent public transportation and has good health care coverage. However, she and her husband worry that the government under the current Prime Minister is going the wrong direction as the right wing becomes more influential.

    I don’t think history is going to be kind to Obama. Assuming we are still around to have a history a few generations from now.

  6. blouise says:

    I believe history will be far kinder to Obama than any of us can imagine. He was handed a government out of control (torturers abound), an economy in the toilet, racism on the rise, and fear riding every wave. Whoever takes the reigns in 2016 will inherit a much calmer and more stable nation. History will recognize that difference and give him far more credit than we are prepared to grant him.

    I did not support his candidacy and thus my expectations were low. We are in far better shape today than I ever thought possible especially given the purposeful intractability of the opposition … something that history will place more emphasis on than we do in the present.

    There is more I wish he would have done but given the extreme instability he inherited, the fact that we can now forget that reality knowing that it is safely in the past, reflects well on his steady, no drama brand of leadership. He was the first black man elected to the Presidency and he was handed a government and nation on the brink of total chaos. He leaves us better than he found us.

    I believe history will note that and give credit where credit is due.

  7. I’m with Chuck on this one. I think history will show Obama as the “closer on the deal to sell America to Wall Street”. A Rubicon in the transition from democracy to fascism.

  8. swarthmoremom says:

    I think you could be right, Blouise.

  9. blouise says:

    The Wall Street debacle will haunt every politician and Cabinet member’s legacy, republican or democrat. (Just as the Supreme Court’s action in 2000 will taint the reputations of the Justices and our legal system in general). Obama will not stand out on the Wall Street issue.

    His biggest problem, from a historical 20/20 hindsight view, and in my opinion, will be his inability to work with his own party’s Senators and Representatives to make “deals”. This is the reason they want him gone. After 6 years in office the guy still doesn’t get it … and doesn’t want to. His ego won’t allow it. He figures he doesn’t need them and it is his most debilitating blind spot. Had he used those resources more effectively, he would have accomplished much more.

  10. swarthmoremom says:

    blouise, Many have already switched over to Hillary, mentally.

  11. blouise17 says:

    SwM,

    He bought his own hype and we all know that the minute one decides he’s smarter than anyone else, he isn’t.

    Hillary knows how it works and she understands how to do deals. She’s studied the successful modern day dealmakers … LBJ and Reagan. And then, of course, there’s Schumer 😉

  12. swarthmoremom says:

    Sounds like you are “Ready for Hillary.” Although my husband was an early Obama supporter, he is on board with Hillary this time.

  13. Elaine M. says:

    I’m not ready for Hillary…and I’m wary of her ties to Wall Street. I really wish someone like Senator Bernie Sanders of Vermont stood a chance. But he’s an Independent…and a Democratic Socialist.

  14. swarthmoremom says:

    You are right, Elaine, but with this electorate Bernie Sanders might carry a state or two.

  15. buckaroo says:

    This administration has decimated the working middle class small business with its regulations & tax code. Most of the self-employed have to become corporations etc. to survive. You have to be in a 501c or a corporation & obtain perquisites to be able to breath. One constantly hears about wealth — but every time one wishes to find the leader — where is he ? Even when citizens are being beheaded — where is our citizen leader — either on a golf course or at a fund raiser. Look at what that has accomplished with those who work for a living. When we try to speak up — we are just told to shut up for we don’t belong to a substantial interest group. Think about it ?

  16. blouise17 says:

    Ted and I have been ready for Hillary since 1996. He is a huge supporter

  17. The tax code didn’t break during the course of one administration. Destroying any equity in that system has been going on in earnest since the late 1960’s under just about every administration and at the behest of the usual corporate suspects.

  18. blouise17 says:

    What pollsters and political scientists are discovering is that Independents aren’t really independents. Basically they are republicans and democrats who are embarrassed by their party or wish not to appear partisan. But when it comes to actually voting, they don’t support third party or Independent candidates … they vote for the democrat or republican who represents the party towards which they lean but are too embarrassed to publicly acknowledge. Pollsters are beginning to understand that “winning” the Independents is basically a fiction. The media is in love with the fiction because it creates drama and drama sells.

    If Independents really did exist in the large numbers as advertised, we’d see a lot more third party candidates elected.

  19. blouise17 says:

    No, I have not acquired a new husband … Ted is supposed to be Tex

  20. Elaine M. says:

    When Will the Pain End for JPMorgan Chase?
    http://www.businessweek.com/articles/2014-11-04/when-will-the-pain-end-for-jpmorgan-chase

    Excerpt:
    The largest bank in the U.S. indicated on Monday that its legal and regulatory troubles are far from over. JPMorgan Chase (JPM) faces a swelling criminal investigation into foreign exchange trading, so the bank’s shareholders should be bracing for even more pain.

  21. Elaine M. says:

    11/4/14
    When Will the Pain End for JPMorgan Chase?
    http://www.businessweek.com/articles/2014-11-04/when-will-the-pain-end-for-jpmorgan-chase

    Excerpt:
    The largest bank in the U.S. indicated on Monday that its legal and regulatory troubles are far from over. JPMorgan Chase (JPM) faces a swelling criminal investigation into foreign exchange trading, so the bank’s shareholders should be bracing for even more pain.

  22. Mike Spindell says:

    “Ted is supposed to be Tex”

    What do you mean by “supposed?”

  23. swarthmoremom says:

    http://www.huffingtonpost.com/2014/11/08/campaign-finance-mitch-mcconnell_n_6122180.html “WASHINGTON — Over the past three years, House Republicans have repeatedly tried, and failed, to bar federal agencies from adopting regulations to govern the campaign finance landscape created by the Supreme Court’s 2010 Citizens United decision. Now, with their party seizing control of the Senate, that effort to stop new rules may win, too.

    The Senate will likely be led next year by the primary antagonist to campaign finance reformers, Sen. Mitch McConnell (R-Ky.). Over three decades, McConnell has made it a top priority to disrupt and degrade campaign finance regulations. With a firm belief that limits on campaign funds are a direct impediment to the First Amendment right of free speech, he has opposed past reform efforts, including challenging in court the 2002 McCain-Feingold law, the passage of which he once called the worst day in his political career.

    With McConnell’s ascendance and with Republicans increasingly unified in opposition to campaign finance reform, its advocates expect a full-frontal assault on the few areas where they had hoped to enact new rules in the post-Citizens United world.”

  24. blouise17 says:

    Mike,

    My kindle thinks his name should be Ted.
    … I suppose.

  25. It’s amazing how the comments have very little to do with Taibbi.

    Speaking from experience with Taibbi and President Obama’s Administration too, most of you have a skewed version of the facts (surreal as they may be).

    Matt Taibbi is no saint and I’ve got serious bones to pick with him. Be that as it may, it is all secondary to the cause of justice and social relief from predatory Wall Street white collar fraudster-isms.

    We need more of Taibbi at Rolling Stone and less of him as a biz manager.

    ——————————————

    As for Barack Obama, I know of the facts about him also, then you all could possibly fathom; including a personal friend, who is also an attorney that worked for Hillary’s campaign. She was outraged that it was hidden from her – that Obama’s parents met in a Russian language class –

    for the CIA.

    I’m pissed (well after the fact) that the POTUS hired Eric Holder. Glad he Holder was a non-Caucasian; but pissed the USAG was in bed with Wall Street – Forever!

    Hillary is much worse; but I will vote for her 10,000 times – before Romney or Bush.

    —————————————-

    Until you find a way to stop talking bias and do more fact finding, Socrates will never take pride in this Blog.

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