Tuesday, June 05, 2012

Too Busy for Work?

Ohio Treasurer Josh Mandel, a Republican, is recovering today from his mega-fundraising tour of Washington, DC.  According to the Cincinnati.com, Mandel attended 3 receptions given in his honor. Mandel most definitely was able to hang out with lobbyists who work to protect banks, and polluters.  Josh Mandel was also scheduled to hang out with Grover Norquist, the man that wants to "...drown government in the bathtub."  

With Ohio's absent Treasurer running around the country, you wonder if he is keeping tabs on recent revelations about banking.  If you recall, Josh Mandel switched Ohio's pension funds to other banks.  Ohio Treasurer press release 3/19/12:

Fund Name
New Bank Designee 
Prior Designee    

Ohio Public Employees
Retirement System

JP Morgan
State Street
Ohio Police & Fire
Pension Fund 

JP Morgan
State Street
School Employees
Retirement System

Citi Bank
BNY Mellon
State Teachers
Retirement System

Citi Bank
State Street

Is Josh Mandel aware of what is going on with these new custodians or does he even care?
Here are some recent news items about JP Morgan:

  • MoneynewsJP Morgan Trading Loss May Top $4 Billion, Could Still Grow

JPMorgan Chase & Co., the largest U.S. bank, may report a $4.2 billion second-quarter trading loss in its chief investment office, according to an estimate by International Strategy & Investment Group Inc......

  • Forbes: Did JP Morgan Violate the Volcker Rule?
....JP Morgan Chase’s $2 billion mark-to-market trading loss is a gift to those of us who want to preserve and strengthen the Volcker rule.

One estimate is that the loss may eventually reach $7 billion. Traders on the other side are taking potshots as the bank tries to unwind its positions gradually. JP Morgan has cancelled a $15 billion share buyback. (The Independent, May 22, 2012.)...

  • AmericablogJP Morgan Dismissed Risk Control Warnings

How has Citi Bank been doing? (Note: CitiBank is part of Citigroup)

Investors are underestimating the risks posed by Citigroup Inc.'s C +2.95% push into faster-growing emerging markets, according to a research report to be published Thursday.

Gimme Credit, a fixed-income research company based in New York, said it expects debt issued by the third-biggest U.S. bank by assets to perform less well over the next six months than bonds issued by the company's peers.....

...Citi knowingly misled the federal government into insuring thousands of risky mortgages, costing taxpayers nearly $200 million, the Justice Department claimed. This took place "before, during and after the financial crisis, and even into 2012," Ivry writes in the latest issue of Bloomberg Markets magazine.....

Josh Mandel has been reckless with his responsibilities protecting pensions and Ohio's money.  Why should anyone vote for a person that is clearly more interested in his own political ambitions that guarding your money???  In the past, a few groups have filed requests for Josh Mandel's work schedule.  It might be time for an update.