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Richmans' Trade and Taxes Blog
The JPMorgan Shakedown Slush Fund
In my last blog post, I reported Attorney General Holder's shakedown of JPMorgan Chase for $13 billion. I supposed that Holder was punishing CEO Jamie Dimon for criticizing the Obama administration's "anti-business" economic policies during the 2012 election campaign.
I missed a possible second political purpose. According to University of Maryland business economist Peter Morici:
Like me, Morici described the settlement as a "shakedown":
Morici predicted more shakedowns in the future:
"You can count on more shakedowns. It would be a felony for me to, for example, threaten you with fraud to get the upper hand in a civil complaint, but not so the attorney general," he said.
In an interview with Univision that aired in October 2010, President Obama once said, "We’re going to punish our enemies and we’re gonna reward our friends who stand with us on issues that are important to us."
Obama may have been just talking about punishments and rewards at the polls. Attorney General Holder appears to be administering the punishments and rewards much more directly.
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