Brazil: JP Morgan ship found with $ 1bn in cocaine

(Shouldn’t this ship be confiscated by the Brazilian government and now be the property of the government?)(oped: oldpoet56) 

JP Morgan ship found with $ 1bn in cocaine

US authorities seized a ship from MSC (Mediterranean Shipping Co) this week which was found last week with a cargo worth $ 1 billion in cocaine (or 20 tonnes). The ship belongs to JP Morgan Asset Management, according to information from The Wall Street Journal

US authorities seized an MSC (Mediterranean Shipping Co) ship this week that found a cargo worth $ 1 billion in cocaine (or 20 tonnes) last week. The ship belongs to JP Morgan Asset Management, according to The Wall Street Journal.

With a capacity of 10,000 containers, the ship is worth approximately $ 90 million and was built in 2018. It is now docked on the Delaware River, near the port of Philadelphia, and according to newspaper sources, it must remain there for a while relevant.

Eight crew members, natives of Serbia and Samoa, were arrested. Others have been fined and are being prosecuted.

Industry executives, shipping lawyers and shipping agents told the WSJ that the case is unprecedented, given the scale and age of the ship.

What is JPMorgan involvement?

So far, the bank that owns the ship has not appeared on the case. Some experts have already discussed the reasons why the company does not seem to care about the crime. Among them, Bloomberg columnist Matt Levine.

First, the columnist’s wife, a defense lawyer, argues, justice must assume that the JP served as a “mule”: the boat belongs to the company, but not to drugs.

Another argument is that JP only financed the purchase of the vessel from MSC through a lease. In this way, none of this technically belongs to the bank.

In addition, considering that the contract is in the name of JP Morgan Asset Management, the asset manager of the bank, the true owners of the equity are the customers, not the company. Managers, by definition, only manage people’s assets.

Finally, the columnist assumes that JPMorgan probably has an agreement that puts the MSC in charge of what happens to that ship – since the operations (and their profit) are not connected to the activity of the bank or the manager.