Never Put Money within Reach of Jamie Dimon

I actually don’t think Federal Reserve Bank of NY Board Member Jamie Dimon got his hands on the almost $3 billion of Iraqi money deposited in the FBRNY that has vanished.

An audit by [Special Inspector General for Iraq Reconstruction Stuart] Bowen’s office published on Sunday investigated the roughly $3 billion the Iraqi government gave the Defense Department to pay bills for contracts the Coalition Provisional Authority awarded before it dissolved in 2004. Most of these funds were deposited into an account at the Federal Reserve Bank of New York.  Even though DOD was responsible for maintaining the proper documentation, it could only account for $1 billion of the money.

“It’s symptomatic of the poor record keeping that was rife throughout the early stages of the reconstruction effort,” Bowen, who has conducted three other major audits into the original pot of roughly $21 billion in Iraqi funds the U.S. managed in 2003 and 2004, said.

After all, that money dates to 2004 and Dimon’s service on the FBRNY Board didn’t begin until January 2007. (Though I will note that Jamie Dimon and Iraq’s money overlapped at the FBRNY for a year.) Moreover, it was DOD’s responsibility to keep track of the money, not the FBRNY or Jamie DImon.

Still, I can’t help but notice that the announcement that we’ve lost almost $3 billion of Iraqi’s money (on top of the more than $100 million in cash that managed to walk out of Saddam’s former palace) came within a day of the time some are declaring the missing MF Global $1.2 billion has “vaporized.”

Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.

As the sprawling probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a “significant amount” of the money could have “vaporized” as a result of chaotic trading at MF Global during the week before the company’s Oct. 31 bankruptcy filing, said a person close to the investigation.

That money does seem to have been lost in the immediate vicinity of Dimon’s JP Morgan.

As the week progressed, MF Global executives came to believe that JPMorgan Chase & Co., one of MF Global’s primary bankers and a middleman moving that cash, was dragging its feet in forwarding the funds.

Corzine phoned Barry Zubrow, then JPMorgan’s chief risk officer, to question the slow payments. Corzine also called William Dudley, president of the Federal Reserve Bank of New York, to update him on MF Global’s status and told him that payments were slow to arrive from JPMorgan and others.


JPMorgan was able to slow the delivery of funds, worsening MF Global’s distress. As a result, they note, hundreds of millions of dollars of MF Global money may be still stuck in accounts at JPMorgan.

So while I’m not suggesting Jamie Dimon bears any personal liability for these missing billions (or those of Lehman or Bear Stearns), I will note that Dimon seems to have the 21st Century equivalent of the Midas Touch: Rather than turning things into gold when he touches them, when billions get within reach of Jamie Dimon, they seem to vaporize.


13 replies
  1. allan says:

    Although Federal prosecutors may take a `looking forward, not backwards’ view of
    JPMC’s actions in the MF Global mess, plaintiffs’ lawyers won’t. Discovery should be entertaining.

  2. bittersweet says:

    Ahhh, with all of the crap I read today concerning the banksters’ seeming immunity to the rule of law, the phrase “plaintiffs lawyers” for once, actually sounds good! Go “plaintiff’s lawyers”!

  3. GulfCoastPirate says:

    Who’s worse – bankers or pirates?

    I think we need some pirates to go after the bankers. Obama and the government isn’t going to do it. What I want to know is who still keeps their money with Dimon?

  4. MadDog says:

    OT via the AP – the US war in Yemen:

    “Yemenis: Airstrikes kill 15 al-Qaida militants

    Yemeni security and military officials say airstrikes have killed 15 suspected al-Qaida militants in the country’s restive south.

    The officials said Tuesday the strikes struck a school and a car in Abyan province in an area between Lawder and Moudia where the militants were hiding. They said the airstrikes were carried out by the United States.

    A Western official in Washington said there was a U.S.-supported strike against suspected leaders of al-Qaida in the Arabian Peninsula…”

  5. klynn says:

    My goodness, all these patterns this morning…

    Great links jo6pac…

    EW, there may be a post for you to write about the repeated patterns with anthrax, military briefings and disappearing funds. Mind you, the only intersection appears to be the patterns (at this time.)

    So, if we stare long enough at the patterns in these stories, do we discover the hidden picture? Loved those hidden picture optics in Highlights for Children when I was a kid.

  6. rugger9 says:

    Why wouldn’t Dimon try to steal the cash? It’s really why the war is there, because one can’t really keep a good accounting of expenses, and if questioned, the perps can scream “traitor” or “not supporting the troops” [like KBR did with the electrocution showers, for which NO ONE has been held accountable] to shut down any investigation. Win win win.

  7. shekissesfrogs says:

    The vaporization quote is being criticized as coming from someone who doesn’t understand the situation.
    @MarkMelin: Why is former FBI director Freeh withholding
    information in a fraud investigation? NYT 7th
    paragraph: Give CFTC info!
    @MarkMelin: RT @retheauditors: Re: @WSJ latest #MFGlobal
    report: $$ don’t “vaporize”. Any media outlet buying a Houdini
    act via legitimate transactions is on crack

    They know where the money is, they are hiding the information. They know who got tipped off early too.

  8. earlofhuntingdon says:

    Is it fair to assume that the US, which held the money in trust for the people of Iraq, will repay that $3 billion about as soon as it settles outstanding claims from treaty violations with native Americans?

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