J. P. Morgan Chase Owned Boat Seized Containing 20 Tonnes of Cocaine!
In one of the largest drug busts in American history, U.S. Customs and Border Protection Agency, boarded the MSC Gayane and found over 39,525 pounds of cocaine in containers. The cargo ship, apparently operated by a Swiss based Mediterranean Shipping Company, is owned by J. P. Morgan Asset Management. This investment arm invests in transportation companies as part of a Transportation Strategy with mostly large Pension Funds as primary investors. While, JP Morgan Chase has not commented on this matter, it raises serious questions as to how the hell 20 tonnes of Cocaine, valued at over $1.3 Billion got onto a ship it technically owns. Furthermore, it certainly is not good publicity for this behemoth Financial Institution with a market cap of over $370 Billion.
This is not the first time J.P. Morgan Chase has received bad publicity. Since 2011, they have been fined over $43 Billion, yes “B” as in Billion, in fines levied for nefarious activities from Mortgage Fraud, Investor Deception Fraud, illegal credit card practices, Traders who covered up fraud ( London Whale), Interest Rate fraud and currency manipulation. A lot of these activities surfaced following the Great Financial Crisis in 2008. They, along with other large financial institutions, like Wells Fargo and Citi Bank were fined large amounts for scrupulous activities. Did anyone go to jail as a result. No! If it were you
and I caught doing such illegalities, we would be in jail. Bernie Madoff was caught defrauding investors and he was sent to prison for a long time.
So, another question raised with this story, is how did cocaine get aboard the MSC Gayane? Well, according to authorities, it made a stop in Columbia before entering the U.S. port. We all know Columbia has drug lords. Did it come from there? It also made stops in Peru, Panama, and Bahamas. Apparently, the ship was destined for Europe. Were the drugs destined for Europe or for American? We do not know. We do know someone is out one hell of a lot of money. This is not the first Cargo Ship to port in the U.S. this year carrying a cargo of cocaine. In February, a ship containing over 3200 pounds of cocaine was seized in a New Jersey Port. In March, another 1100 pounds of cocaine was confiscated in Philadelphia.
America, we have a drug problem- big time!
Of concern, is that, this ship was flying a Liberian Flag. International Shipping Laws require that Cargo ships must be registered in a country. In doing so, they must abide by that country’s rules and regulations. Liberia is known, shall we say, to have more lenient laws and regulations. Many cargo ships fly the Liberian flag and many criminal elements are often associated by ships registered with the Liberian Government. While, I do not wish to paint J.P. Morgan Chase with knowing anything about this matter, except to say that I think they failed in their underwriting due diligence.
In the final analysis, is this a tempest in a tea pot or something much bigger? Both, I say! J.P. Morgan is not a willing accomplice in the drug trade, but they certainly erred in underwriting this entity. We all know anything to do with Illegal Drugs is Bad for Business!
Listen to this podcast as Paul P. has more to say about t