Friday, November 07, 2014

the $9billion dollar witness; meet jpmorgan chase's worst nightmare

rollingstone |   She tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn't take it anymore. 
"It was like watching an old lady get mugged on the street," she says. "I thought, 'I can't sit by any longer.'" 

Fleischmann is a tall, thin, quick-witted securities lawyer in her late thirties, with long blond hair, pale-blue eyes and an infectious sense of humor that has survived some very tough times. She's had to struggle to find work despite some striking skills and qualifications, a common symptom of a not-so-common condition called being a whistle-blower.

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.


Vic78 said...

Taibbi's a better fit at Rolling Stone. It works because he's a renegade and Rolling Stone doesn't give a shit about access. Rolling Stone just let Taibbi do his thing. I never thought he was management material.

The billionaire wants to show everyone how to play a game he isn't familiar with. So, he hires a gang of renegade writers and let's them supervise? Stay in your lane is probably one of the wisest things I've heard in my short life. He should've taken the time to do his research and then come out with his media platform. I hope he learns something from all this.

CNu said...

Omidyar is an elite suckup, hell, he even sucks up to other nouveau riche hangers-on and parasites.

Wenner evidently is not. He's cool with his $700 Milli and living according to his own code, gotta respect that! Taibbi's learned his lesson for damned sure and i hope it becomes still further evident in his work.