JP Morgan Makes Over Half A Billion Dollars Off Food Stamps

Report: JP Morgan Makes Over Half A Billion Dollars Off Food Stamps
http://www.breitbart.com/Big-Government/2012/10/01/Report-JP-Morg...
REPORT: JP MORGAN MAKES OVER HALF A BILLION DOLLARS OFF FOOD STAMPS
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by WYNTON HALL (/COLUMNISTS/WYNTON-HALL)
1 Oct 2012, 1:29 PM PDT
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A new report (http://g-a-i.org/gai-report-profits-from-povertyhow-food-stamps-benefit-corporations/) by the Government Accountability Institute finds that JP Morgan has made at least $560,492,596 since 2004 processing the Electronic Benefits Transfer (EBT) cards of 18 of the 24 states it has under contract for the food stamp program.
Indeed, JP Morgans Christopher Paton told Bloomberg (http://www.bloomberg.com /video/57038578-jpmorgan-s-paton-discusses-u-s-food-stamp-use.html) News that food stamps are big business for the big bank: We are the largest processor of food stamps in the country[the EBT program] is a very important business to JP Morgan. Its an important business in terms of its size and scale. Right now volumes have gone through the roof in the past couple of years or so. The good news from JP Morgans perspective is the infrastructure that we built has been able to cope with that increase in volume. While some may be glad that a private companynot a government agencyis tasked with EBT transactions, the GAI report reveals that JP Morgan does not use the same fraud detection systems commonly used by todays credit card companies. In fact, federal and state agenciesnot EBT processorsare the ones tasked with policing food stamp fraud. That means EBT processors enjoy multiple pathways to profits that run counter to efficiency and strong oversight. For example, writes (http://www.thedailybeast.com /articles/2012/10/01/jp-morgan-s-food-stamp-empire.html) GAI president Peter Schweizer:
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10/1/2012 4:05 PM
Any time TANF recipients withdraw their cash benefits or make balance inquiries through out-of-network ATM machines, the user may incur ATM transaction fees generally ranging from $.75 to $1.50. In addition, most states allow EBT processors to charge card replacement fees. Arizona cardholders, for example, are permitted one free replacement a year, after which a $5 per card fee is imposed. The same goes for customer service calls: After an EBT cardholder exceeds the states maximum number of free calls, EBT processors typically tack on a $.25 per call fee. By making welfare inefficiency and abuse lucrative, the poverty industry has created a potentially toxic brew of corporate cronyism and government inefficiency that lets food stamp abuse enforcement slip (http://www.thedailybeast.com/articles/2012/10/01/jpmorgan-s-food-stamp-empire.html) through the bureaucratic cracks: According to the USDAs website, the federal food stamp program has over 100 inspectors to police the nearly 200,000 retailers nationwide that accept EBT cards. For its part, the state of Florida has 63 positions allocated to police over 3 million EBT users. JP Morgan is currently involved in an eight-month pilot project with Florida focused on EBT fraud and abuse. The total staff? Just one JP Morgan employee and five to ten state employees, according to Florida officials. So how did EBT processors like JP Morgan land its lucrative half-billion dollars worth of contracts? The GAI report, Profits From Poverty: How Food Stamps Make Corporations Money (http://g-a-i.org/wp-content/uploads/2012/10/GAI-Report-ProfitsfromPovertyFINAL.pdf), says JP Morgans political donations to members of the House and Senate Agriculture Committees (who oversee the food stamp program) skyrocketed once the bank entered the EBT market: Between 1998 and 2002, JPMorgans total contributions per election cycle averaged $82, 897. After JP Morgan entered the EBT services market until the 2010 election cycle, their average donation per cycle more than doubled to $215,120. JPMorgans donations to political campaigns also show a clear trend. During the 2008 election, Barack Obama received more than twice the contributions of John McCain: $807,000 for Obama compared to McCains $345,505. Today, one out of every seven people in America (http://www.breitbart.com /Big-Government/2012/09/08/Real-Unemployment-Now-19) receive taxpayer-funded food stamps.
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POPPYGIRL
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THIS is crony capitalism at its finest. JP Morgan throughout history has been the benefactor of so many administrations largess that it's not even funny. They have ALWAYS somehow managed to have their hand constantly in the government pie.
A LIKE REPLY 2 minutes ago F
DGLEON
I would say that 90% of food stamps need to be stopped.
2 of 5
10/1/2012 4:05 PM
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7 minutes ago
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TONYRASKOON
I love it when a company makes a profit. This however is a payoff. A kickback. Pay for play. Crony capitalism. Inside baseball. "The way the world works." Bribery. This has got to stop.
A LIKE REPLY 43 minutes ago 5 Likes F
WIGGLESWORTH111
Back in the heyday of the mob it was called "the skim".

A LIKE REPLY 36 minutes ago in reply to TonyRaskoon 2 Likes F
WILMAC
Now what are the OCCUPYers going to do.,,if they stop supporting the l%ers they will starve.,,LOL...every time they turn around they get bit in the azz by Reality..
A LIKE REPLY 48 minutes ago 1 Like F
DUDE911
They need to end all these corporations giving contributions to every political ally they want. The elected members of our government should be restricted to accepting money for political campaigns to those people and/or corporations whose actual home or corporate home office is within the confines of the political district. There is no justification for huge corporations buying state rep's and destroying the loyalty those representatives owe to the voters who put him into office. There is no reason that a corporation headquartered in one district should be allowed to heavily invest funds into another district. The people and companies within that single district are the ones that are represented by thier elected officials and they alone should affect that outcome, not corporations or unions that do not live in the representatives district. That would force representatives to be competiive within thier own districts, and not affluent because of outside funding from other sources that the representative has no representative ability for or to. This would effectively kill the Lobby in Washington DC and force Congress back to representation as thier sole responsibility to those who elected them for the position they hold. Any representative who works for anyone besides those who live within his district, recieving copious amounts of cash that do not represent the constituents that he is morally obligated to represent, should be removed from office and barred from public service.
A LIKE REPLY 51 minutes ago F
2BFREE2B
I think we should get a couple carloads of people and go down to that thar Welfare office and sign us up for sum dem food stamps...Wouldn't it be a great thing for about 100 people to show up at one time and sign up...maybe even 1,000 people. Wouldn't it be even greater if everyone quit paying their income tax and made the 47% jump to about 75%. I wonder what the idiots we elected to office would do then.
A LIKE REPLY 1 hour ago 2 Likes F
AZVICK
That money belongs to us, the taxpaying public. POny up, MOrgan. I'll take it in silver, please.
REDDOTS
What is it Obama said, You have to reward your friends and punish your enemies That is how I define crony capitalism.
HOUCHRONSUX
We now have the JPMorgan "food" cartel. It looks like the Left figured out how to replicate the drug business into other industries. And this is legal.
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1 hour ago
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ITOLD
3 of 5
10/1/2012 4:05 PM
Like Kraft makes a handsome profit selling food that is bought using food stamps.
A LIKE REPLY 24 minutes ago in reply to HouChronSux F
LIBERTYOR
A ripoff on top of a ripoff, thanks to the food stamp president.

ANOTHERDAY
I guess this type of fraud is no longer fraud. It's just the cost of doing business in Obama's New World. The OMB will now be paying some defense contractors with taxpayer money to keep them from laying people off right before the holidays. It's bad for the re-election business.
A LIKE REPLY 2 hours ago 7 Likes F
FLAG25
What a scam! How much did JPMorgan give to bho? Pay for play? When he loses the first thing President Mitt Romney should do is begin to audit the programs that enriched bho friends and cronies.
WAYNE FROHM
Cronie- capitalism at it's finest. And think of all the of the other scams the BIG O has working for him. But what the hay, it's all taxpayer funded, right??
A LIKE REPLY 1 hour ago in reply to flag25 11 Likes F
FURTHERMORE14923
Perfect example of how the only thing worse than no regulation is corrupt regulation. Free enterprise has natural checks and balances and that is why the least of amount of regulation the better. As a rule government doesn't fix problems it exploits them.
A LIKE REPLY 1 hour ago in reply to Wayne Frohm 4 Likes F
LIBERTYOR
The biggest being General Electric

A LIKE REPLY 1 hour ago in reply to Wayne Frohm 9 Likes F
TIM WELLS
Maybe JPMorgan could employ some of those people, so the rest of us can stop supporting them.
ITOLD
a lot of them are hardly employable, unfortnately.

A LIKE REPLY 25 minutes ago in reply to Tim Wells 1 Like F
WILMAC
Its obvious you haven't seen those people.,,they are pathologically unemployable.
A LIKE REPLY 45 minutes ago in reply to Tim Wells 3 Likes F
STANH
Is this a great country or what? Just wow!

LEEPERMAX
Obama's new currency

BOOMERS165
4 of 5
10/1/2012 4:05 PM
Printed from the Chicago club, and distributed to the New York club.
A LIKE REPLY 1 hour ago in reply to leepermax 4 Likes F
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10/1/2012 4:05 PM

JP Morgan Makes Over Half A Billion Dollars Off Food Stamps

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Report: JP Morgan Makes Over Half A Billion Dollars Off Food Stamps

by WYNTON HALL (/COLUMNISTS/WYNTON-HALL)

1 Oct 2012, 1:29 PM PDT

Scarborough's Dishonest Defense of MSNBC's False Romney Attack (http://www.breitbart.com /Big-Journalism/2012/10/01/MediaWatch-Scarborough)

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I would say that 90% of food stamps need to be stopped.

Back in the heyday of the mob it was called "the skim".

A ripoff on top of a ripoff, thanks to the food stamp president.

The biggest being General Electric

a lot of them are hardly employable, unfortnately.

Is this a great country or what? Just wow!

Obama's new currency

M Subscribe by email S RSS

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