In terms of professions that people trust, bankers and stockbrokers are near the bottom of the list. One bank with a rather questionable history in terms of ethics is JPMorgan Chase. For example, in 2013, instead of facing a criminal investigation, JPMorgan agreed to pay $13 billion to the Justice Department over the poor quality of their mortgage-backed securities in the lead up to the 2008 financial crisis. This was after they received a $12 billion payout from the government in 2008 after the housing market crashed. Oh, and they used the taxpayer funded bailout money to pay themselves massive bonuses while over a million Americans lost their homes.
JPMorgan is also the bank through which Bernie Madoff ran his Ponzi scheme. Executives at JPMorgan supposedly knew about the scam, but they never reported him to any authorities in the two decades that he ran the scheme. As a result, JPMorgan agreed to pay $2 billion in fines, which isn’t much considering Madoff stole $50 billion from investors and the JPMorgan executives got rich themselves, but faced no consequences.
Now those are just two of their biggest controversies in recent years and we only explained them so you can truly appreciate how stupid their Twitter campaign was.
With the self-awareness of a drunken frat boy at the ballet, JPMorgan thought it would be a good idea to do a live Q&A on Twitter on November 14, 2013. The day before the Q&A, they posted a tweet asking for people with questions to use the #AskJPM tag. The tweet went viral and within 24 hours there were close to 17,000 questions. Not surprisingly, many questions pertained to their shady practices and questionable ethics. JPMorgan reviewed the questions and cancelled the Twitter takeover before it was supposed to start.
Hopefully JPMorgan learned that Twitter won’t solve their image problems. Instead they may actually have to focus on being ethical and try not to rip people off.