JP Morgan in Spotlight - Again!
The latest question about JP Morgan's business practices focuses on its asset management business. Apparently, the OCC, one of the bank's regulators, just noticed that JP Morgan uses an inordinate percentage of its own funds in client portfolios. So what's new?
I've run across these portfolios when asked to analyze them and it's rather obvious. They're unusually stocked with JPM funds. And I'm not the OCC. Anyone could see this.
Given what I just said, you have to wonder why in heaven's name the federal regulator could possibly wonder this:
Of course you do realize that JPM funds in JPM asset management accounts generate higher fees for JPM than the fees charged by other funds they include in their JPM asset management accounts. Anyone with a smidgeon of reason and common sense could figure that one out, right? But then again, no worries...
So I suppose the OCC will continue its investigation until all this blows over, then either chasten, fine or quietly close the book on this one. And life will go on at JPM, as it always seems to do, no matter what they do. Conflict of interest? No worries.
And you thought all that talk about oligarchy, elites, crony capitalism and the rest should concern you? No worries.
(Click HERE for the rest of the article.)
I've run across these portfolios when asked to analyze them and it's rather obvious. They're unusually stocked with JPM funds. And I'm not the OCC. Anyone could see this.
Given what I just said, you have to wonder why in heaven's name the federal regulator could possibly wonder this:
It isn't known how big a percentage of client assets resides in J.P. Morgan financial products.????
Of course you do realize that JPM funds in JPM asset management accounts generate higher fees for JPM than the fees charged by other funds they include in their JPM asset management accounts. Anyone with a smidgeon of reason and common sense could figure that one out, right? But then again, no worries...
Although a bank like J.P. Morgan generates higher fees for its own products than it does for third-party products, those fees don't factor into employee compensation, the people added.Ah, so much better. Employees aren't directly spiffed for including the home-grown funds. But isn't money fungible? And doesn't that mean that those "extra" fees, falling as they would to the bottom line, would be available for any of those lucrative bonus pools that banks notoriously create for their employees? I guess the OCC's view of those extra fees vis a vis the obvious conflict of interest presented by JPM employees stuffing client accounts with their own funds boils down to a simple, "No worries."
So I suppose the OCC will continue its investigation until all this blows over, then either chasten, fine or quietly close the book on this one. And life will go on at JPM, as it always seems to do, no matter what they do. Conflict of interest? No worries.
And you thought all that talk about oligarchy, elites, crony capitalism and the rest should concern you? No worries.
(Click HERE for the rest of the article.)
Comments