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

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

This story focuses on the inefficiencies and possible corruption of the Food Stamp (EBT) program and TANF as a way for banks handling the "cards" to make money from each and every transaction.

Although most of the "fees" are from legitimate transactions, the fraud enforcement is on the government.

Either way, the banks get richer from the programs.

A new report 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 Morgan’s Christopher Paton told Bloomberg 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. It’s 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 Morgan’s 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 company—not a government agency—is tasked with EBT transactions, the GAI report reveals that JP Morgan does not use the same fraud detection systems commonly used by today’s credit card companies. In fact, federal and state agencies—not EBT processors—are the ones tasked with policing food stamp fraud. ..................

I wonder if the old ways (checks and coupons) were less expensive for taxpayers ?

This is nothing new when the feds said they would stop mailing out SS checks by mail which meant a big windfall for the banking industry.

Just like Medicare, and medicaid is a big windfall for insurance companies.

The prescription drug plan is a big windfall for big pharma as well as birth control.

The green energy intiative is a big windfall for corporations.

There is so much corruption in the current government but it is sold as doing "goodness and joy".

It is getting to the point that carrying cash is a crime these days because the governrment can't track it which brings up the prepaid card that get reported to DHS, and under the banking acts, and large cash transactions that get reported to the government,.

This country sucks

reply to post by neo96


Well this is what happens when Capitalism gets to run around completely unchecked... Corporations get completely out of control. They're like kids in a candy factory, they're never going to stop of their free will no matter how much destruction results of their sugar high... it's our job to say no.

reply to post by Kali74


Then you'd have no problems ending those social programs that force people to buy those corporate products.

No wait never mind.

That is not capitalism it has not existed since 1913

reply to post by neo96


I believe there would be a vastly decreased need to have social programs if Capitalism hadn't been allowed to become the beast it has, but we gave in to deregulation just like bad parents give into spoiled kids demanding candy. You know once upon a time a Corporation had to respect their Charters? They had to actually be approved by the people of the State they wanted to operate in, if the business became bad for the people of the State those Charters got revoked... we still have this power we just have no clue about it (thanks JPZ, miss ya), we have no idea how to exercise our authority over Capitalism and Government. We have half the country running around like morons screaming Socialism anytime we try.

A spoiled child will tell you that the candy is good for him, that it's in your best interest to let him have it... doesn't make it true. It is our job as parents to regulate a childs intake of candy and correct bad behavior. It is our job as citizens to reign in Corporations and put them on a restricted diet so that we the people don't have to deal with their sugar meltdowns.

reply to post by xuenchen


go and get out your grandma's or granpa's bank book [with their permission of course]
check the date for when SS or Food stamps are deposited then check the date when it's accessible to the recipient
dont know about FS but am 100% sure regarding SS: there is a difference of 1 to 3, sometimes 4 days that deposit is generating interest and profit for the bank multiply by everyone getting direct deposit and you'll get the picture.
this diseased greedhead mentality that allows the privileged few to write whatever amount they want into there bank accnts. goes back to Mesopotamian times, and is the root cause of the collapse of all the great civilizations, and will be doing the same to our own. in the next age interest and those who espouse it must be eliminated, else we'll have to do it all over again

thieves all of them
heck, even stefan molyneux is ranting nowadays

lol he's toned it down the original was better IMO

Over here families are getting @$1200 a month for Food Stamps on a plastic card every month.

They wheel out shopping carts full of steaks and lobster and you can buy it from them for half the cost as they need the cash to buy booze and drugs.

The Food Stamp program's been wasting much of the food....it's a Federal subsidy to food getters/creators.

reply to post by Pervius


Over where? because in the USA you only get a couple hundred

Originally posted by Kali74
reply to post by neo96

 

Well this is what happens when Capitalism gets to run around completely unchecked... Corporations get completely out of control. They're like kids in a candy factory, they're never going to stop of their free will no matter how much destruction results of their sugar high... it's our job to say no.

No, this is what happens when the government lets banks make laws, create money, and have unregulated power. This has zero to zero to do with Capitalism. As usual.

/TOA