JPMorgan in Hot Water… Again
From First Senior Financial Group, read the full story here.
There’s no shortage of stories about financial companies coming under investigation for alleged crimes like fraud, insider trading, and conspiracy. We’ve seen names like Goldman Sachs, Citigroup, Lehman Brothers, and Bear Stearns rotate through the headlines, so it takes a lot for one financial criminal to stand out over all the others. Well JPMorgan has handily accomplished that task by coming under investigation from no less than 8 different federal agencies. You heard that correctly, They are being investigated by at least 8 different regulatory agencies in the U.S. (and that’s not to mention possible intervention by foreign regulators).
Hopefully these regulators can make something stick, as financial firms have a history of wriggling their way out of the hands of the law. But the most important question here is this: Why are people in or near retirement investing in the stock market at all? Big firms like JPMorgan charge big money for their services, but in reality, they are doing a major disservice to their older clients by recommending they invest in securities at all. When you hear about a firm being investigated by 8 regulators at once, why would you want to give them your hard-earned retirement savings?