The MSC Gayane, a shipping vessel financed by JPMorgan Asset Management and operated by the Mediterranean Shipping Company, was seized by US Customs earlier this week.
JPMorgan hasn’t yet publicly addressed its association with the vessel.
Matt Levine, a columnist at Bloomberg Opinion, wrote a piece about the subject on Wednesday. His column provided several explanations why JPMorgan may not feel inclined to defend itself.
Put simply, the firm is likely not liable whatsoever for the contents of the seized vessel.
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A boat owned by JPMorgan was seized by US customs weeks after more than $1 billion worth of cocaine was found aboard. But the bank doesn’t seem to mind.
JPMorgan hasn’t yet felt inclined to publicly address its association with the vessel. The firm has also declined several requests for comment from Markets Insider.
Possible reasons why can be gleaned from a piece Wednesday by Bloomberg Opinion columnist Matt Levine. Here are four reasons why JPMorgan likely isn’t sweating too much:
1) JPMorgan owns the ship, not the drugs
“I’m sure JPMorgan was just a blind mule,” Levine’s wife, a federal criminal defense lawyer, told him. “Somebody else packed their ship for them.”
2) JPMorgan doesn’t even technically own the vessel — it just financed the purchase
The bank financed the purchase of the ship for the Mediterranean Shipping Company (MSC), a Swiss-based shipping firm.
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“You should think of this not so much as ‘JPMorgan decided to buy a boat and then rented it out to MSC’ and more as ‘MSC decided to get the money to finance its boat from JPMorgan, and it made sense to structure that financing transaction as …read more
Source:: Business Insider