Some studies indicate that children learn about fairness between the ages of 3 and 6. They quickly learn what ‘unfair’ is, especially when the situation or deal is one-sided or obviously unfair in the eyes of an adult. However, they have difficulties in distinguishing situations or deals that are near equal value which fall under the category of ‘even Stevens”. One child may get the better part of the deal but such small amounts of difference in valuation aren’t worth their time.
A recent article on the New York Post, (April 29, 2009), points out that Jamie Dimon of JP Morgan is being accused of wrongfully hoarding an 8 billion dollar windfall gleaned in Washington Mutual’s collapse, 8 billion that it paid 1.88 billion for.
Or to put it in terms that a child could understand; Jamie wants 8 of your matchbox cars, plus your carrying case, plus your matchbox race track for which he will give you 1 matchbox car. That deal would immediately conclude with the child screaming, “That’s not fair, I’m telling Mom, Mom!!!.”
If it doesn’t even pass the fairness test of a child then how in the world can the FDIC and JPMc hope to maintain their one-sided gain in the eyes of a new Mom, Judge Walrath?
The original article as posted on the NY Post
Jamie Dimon is being accused of wrongfully hoarding an $8 billion windfall gleaned in Washington Mutual's collapse -- and using the cash to prop up profits at his JPMorgan Chase.
In a bitter twist in the mammoth bankruptcy of WaMu, two parent holding companies of the defunct bank said in court papers that JPMorgan Chase refuses to release about $4 billion in cash deposits on the "absurd" belief it "purchased" the cash for $1.88 billion.
JPMorgan is also accused of improperly staking a claim to huge tax refunds worth another $4 billion, papers said. Documents signed by JPMorgan, when it took over WaMu eight months ago in a hasty shotgun marriage arranged by bank regulators, specifically forbid such cherry-picking of key assets, records show.
Sources said hundreds of bondholders are outraged that $8 billion is being stripped out, leaving nothing in the pot for WaMu's holding companies to pay bankruptcy claims.
"Jamie Dimon is essentially keeping money that legally should be going into the pockets of wronged investors," said one source.
JPMorgan said it doesn't comment on litigation.
Court papers said JPMorgan boosted its last quarterly profits by $6.1 billion, or by 65 percent, using the $4 billion in WaMu cash locked up in ordinary deposit accounts.