Monday, May 14, 2012

JP Morgan Bank Losses in the Billions from Sketchy Hedge Trading

Photobucket


We made a terrible, egregious mistake...There's almost no excuse for it...We got very defensive. And people started justifying everything we did.
~ CEO of JP Morgan, Jamie Dimon, on NBC's Meet the Press













Jamie Dimon, the head of it, is one of the smartest bankers we got, and they still lost $2 billion and counting....We don't know all the details," Obama said. "It's going to be investigated, but this is why we passed Wall Street reform.
~ President Obama on The View

Jamie Dimont Put in the Rough
~ Headline on Boston Herald

It’s no secret that bankers have been feeling the wrath of an angry public—although nowhere near as much wrath or anger as the situation demands. They kept a low profile for a while, garaging their Lamborghinis and keeping the big watches in the sock drawer. But like penny-ante crooks who ignore warnings not to flash their money around after a heist, they are what they are. And everything, from multi-million-dollar duplexes to oceangoing yachts and NetJets accounts, is back on display.
~ From an article called "Dimon in the Rough" on VanityFair.com

If we are going to define this trade as a hedge, then there is no other conclusion to reach except that everything at a huge bank is a hedge.
And once you define everything as a hedge, well then, nothing is a hedge.
~ Barry Ritholtz on The Big Picture Blog

You liberals need to get out of the way, u don't understand capitism (sp)
~ Huffpost Super User Oppose Obama (who cannot spell)

What is capitism, brainwave? We DO understand fraud and malfeasence.
~ Celiene on Huffpo in response to Oppose Obama

Why is this a left vs. right problem? How can anyone think we don't need tighter regulation?
~ comment by Jaguar Man on Huffington Post

That is what Jamie Dimon has said. He says it’s stupid and sloppy but we’ll fix it. So stay away. But what if the next loss is $20 billion or $200 billion? Is he saying JP Morgan should be entitled to continue to take these bets right up until the day it lands in the taxpayers lap again?
...That’s the strongest argument for a modern Glass-Steagall. Glass-Steagall said in effect that hedge funds should be separated from commercial banking. If a big institution wants to go out and play in the market, that’s fine. But it doesn’t get the backup of the federal government. If it’s too complicated to implement the Volcker rule, do you say we give up and let the largest financial institutions do what they want? Or do you say maybe that’s the reason we need a modern Glass-Steagall?
~ Senate candidate Elizabeth Warren (D-MA) to Ezra Klein of Washington Post



Banks have been loading up on risk and they don't want to be accountable. Jamie Dimon not only is CEO of JP Morgan Chase, he holds this position of public trust, advising the New York Fed. on how to regulate risk for these large financial institutions, like his own finanicial institution.
It's not just conflict of interest, it's a real point about attitude here. This isn't personal to Jamie Dimon. It's what's been going on ever since Dodd-Frank passed. There's been a guerrilla war out there in which the largest financial institutions have been doing everything they can to make sure that financial regulations don't get put in place. And if they do get put in place, that they're loaded with loopholes and not very effective. There's been a lobbying army hired by these financial institutions becasue they really don't want to have any oversight. They want to take on risks however they want to take on risk and let the rest of us bear the consequences...
~ Elizabeth Warren on CNN's Starting Point




Posted by at
Labels: , , , , , , , , , , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)