US banks claim discrimination

US banks claim discrimination

US bankers are another breed. Everyone hates them for causing the financial crisis with their irresponsible lending practices and now they're saying everyone is picking on them. JP Morgan Chase CEO Jamie Dimon is a case in point.

In this interview with Fox, he takes issue with the way Obama has criticised the banks. He then accuses America's first black president of discrimination. "I've disagreed right from the beginning from this blanket blame of all banks are all bad guys I don't like that. I think that's a form of discrimination that should be stopped."

Of course, JP Morgan Chase was one of the banks that had a big hand in the subprime mortgage excesses. It funded the nation's two largest subprime lenders, Countrywide and Ameriquest, providing them with the capital they needed to originate subprime mortgages. JPMorgan Chase also owned a major subprime lender, Chase Home Finance, and acquired two banks with large subprime operations: Washington Mutual and Bear Stearns . Together, these five firms issued over $295.3 billion in subprime loans from 2005-2007.

It is also worth pointing out that JP Morgan Chase received $94.7 billion as part of the US government bailout of banks. That's hardly discrimination.

Dimon has just received a $23 million pay packet. Dimon's pay package last year consisted of $1 million in salary, a $5 million cash bonus and $17 million in stock and options. JPMorgan increased his salary in March to $1.5 million. If that's discrimination, they should spread more of that around.

Photo source swanksalot


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