Letter to Mr. James Dimon, President and CEO of J.P. Morgan Chase & Company - Bill Blocking J.P. Morgan From Writing Off Wall Street Meltdown Penalty
Letter
Rep. Peter Welch introduced legislation this week that would prevent J.P. Morgan from writing off as a business expense any portion of a penalty imposed by an emerging settlement with the Justice Department. News reports indicate that the Department is close to settling with J.P. Morgan over its actions that contributed to the near collapse of the American economy in 2008. According to these reports, the company would be able to write off a significant portion of a multi-billion dollar fine under the terms of the settlement.
The Stop Deducting Damages Act(HR 3445) would put a stop to corporations reaching into the taxpayer's pocket to pay their fines for breaking the law. Rep. Welch circulated a letter yesterday to House colleagues seeking support for the bill.
Rep. Welch also sent a letter earlier this week to J.P. Morgan CEO Jamie Dimon demanding that the company "accept full responsibility for full payment of any fine" related to any settlement. His letter to Dimon posed the question, "Should a wrongdoer whose conduct caused harm to the taxpayer ask the taxpayer to help pay the fine for the wrong done? We think not. .... It was the taxpayer who initially funded the bailout of Wall Street. It was the taxpayer who continues to endure the consequences of the worst recession since the Great Depression. The taxpayer should not, therefore, be required to contribute a nickel towards the fines imposed."
Rep. Luis Gutierrez(D-IL) is an original cosponsor of H.R. 3445 and also signed Rep. Welch's letter to Mr. Dimon.
You can read the full text of the letter below:
Mr. James Dimon
Chairman, President and CEO
J.P. Morgan Chase & Co.
270 Park Avenue
New York, NY 10017
Dear Mr. Dimon,
Should a wrongdoer whose conduct caused harm to the taxpayer ask the taxpayer to help pay the fine for the wrong done?
We think not.
Yet news reports indicate that J.P. Morgan, in its negotiations with the Justice Department over a $13 billion fine related to its mortgage activities, is seeking to do just that -- shift a significant portion of its penalty to the American taxpayer.
It was the taxpayer who initially funded the bailout of Wall Street. It was the taxpayer who continues to endure the consequences of the worst recession since the Great Depression. The taxpayer should not, therefore, be required to contribute a nickel towards the fines imposed for conduct that got America into this mess in the first place.
We strongly urge J.P. Morgan to accept full responsibility for the full payment of any fine related to its conduct in this matter.
Sincerely,
PETER WELCH
Member of Congress
LUIS GUTIERREZ
Member of Congress
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