JP Morgan (JPM) is the largest processor of food stamp benefits in the United States. JP Morgan has contracted to provide food stamp debit cards in 26 U.S. states and the District of Columbia. JP Morgan is paid for each case that it handles, so that means that the more Americans that go on food stamps, the more profits JP Morgan makes. Yes, you read that correctly. When the number of Americans on food stamps goes up, JP Morgan makes more money. In the video posted below, JP Morgan executive Christopher Paton admits that this is “a very important business to JP Morgan” and that it is doing very well. Considering the fact that the number of Americans on food stamps has exploded from 26 million in 2007 to 43 million today, one can only imagine how much JP Morgan’s profits in this area have soared. But doesn’t this give JP Morgan an incentive to keep the number of Americans enrolled in the food stamp program as high as possible?

There are just some things that are a little too “creepy” to be “outsourced” to private corporations. The JP Morgan executive in the interview below does his best to put a positive spin on all this, but it just seems really unsavory for a big Wall Street bank to be making so much money off of the suffering of tens of millions of Americans….  More

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Comments on this article by Basehitz:

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I have read many books about our financial system since this blew up. Occasionally, I find one that really changes my perspective. One of the biggest questions is the seemingly irrational actions of the Federal Reserve. I’m currently reading a 600 pg dissertation on how the Fed was founded and how it and other CBs have acted throughout history. It is called “The Creature from Jekyll Island” by G Edward Griffin.

One of the conclusions I drew from this book as it pertains to this article, is that investment banks have become ruthless predators acting with reckless disregard for the consequences to others, and will do just about anything for money. The author goes so far as to accuse investment banks of financing both sides of a conflict for the dual purpose of benefiting from the military complex build-out as well as the indebtedness of the warring countries, whose debt becomes more profit for the banks. And if countries get overextended and default. . .

The Federal Reserve, according to this author, was created by the megabanks as a self-serving entity, sold by fraud to CONgress and the taxpayers, and whose malfeasance is not unintentional screwups, but is deliberate raping and pillaging of the populace to serve the banks. From this author’s perspective, the Fed’s actions become very explainable. They are part of the fraud and cover-up.

My conclusion from this book is if the populace had any idea of the extent malfeasance of the Federal Reserve and the megabanks, that they would demand criminal prosecution of thousands of leading players, including at the Fed. Unfortunately, the author concludes that CONgress is complicit in this malfeasance because their reckless spending requires money printing to finance, as it would be impossible to fund their spending legitimately. The Fed GLADLY accommodates, again because more debt = more profit to the banks.

William Black, former S&L investigator and current law professor, accuses the Fed, the banks, the regulators and the govt of being mutually complicit in govt-sanctioned fraud on a massive scale, and now a cover-up. March 2010 Black gave this interview (my key takeaways below)

http://www.youtube.com/watch?…

• Financial crisis was one of deliberate conscious fraud. Black quotes FBI statement in 2004 of “epidemic of mortgage fraud”. FBI published numbers on extensive degree of fraud. Black estimates the reported fraud grossly understates reality, which is probably more like 500k to 1m mortgage fraud instances per year.

• MBS ratings were fraud. Failure rate was huge but AAA given by agencies. The fraud was overwhelmingly from lender, not borrower. And where borrowers were fraudulent, it was facilitated by lenders gutting underwriting.

• Were global financial leaders complicit in fraud motivated by personal bonuses? Black – they knew it would crash, but the senior officers didn’t care if the companies failed because they would still walk away with massive bonuses. This kind of accounting fraud is a “sure thing”.

• Black lays out the 4-point plan these banks deliberately made in order to maximize personal profits.

Interview skips from book review to current situation:

• Things have changed since the crisis, and overwhelmingly for the worse.

• Example, regulators are supposed to shut down by law failed banks. Both Bush and Obama failed in this as bank lobbying got Congress to force FASB to allow banks to under-report losses on their books. Banks probably have $1T of losses on their books which are not recognized. The profits the banks report are fraudulent.

• Bernanke is directly complicit in facilitating bank fraud. Prior to this BB was a disastrous failure in failing to regulate.

• There has not been a single arrest, a single indictment of any executives in financial firms since this crisis. In the S&L crisis, there was many.

• We now have sociopaths in control of our major financial institutions.

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