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The JPMorgan loss prompts the Senate into action, where Banking Committee Chairman Tim Johnson...
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Monday, May 14, 2012, 2:56 PM ETThe JPMorgan loss prompts the Senate into action, where Banking Committee Chairman Tim Johnson says he will hold additional hearings on Wall Street reform. The hearings will include representatives from the SEC, CFTC, and the FDIC, and, presumably, Jamie Dimon, among others from JPM.
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This news story has 11 comments:
But this is for some last minute campaign donations I am sure.....and JPM is writing the checks as we speak..
regs.Worse than MF Global we think.Hope he survives we think the board may throw him under the bus,Giving INA a golden parachute and early retirement bad looks like hush money will not be enough probably bigger heads will have to roll. He would be wise to give back his Bonus at a minimum and start admitting his own personal responsibility.Using "we" all the time is blame shifting actually makes him look deceptive. APD
Bringing back Glass-Steigal is not the answer as G/S never prevented the treasury department at every money center commercial bank from doing both hedges and proprietary trades. The main gist of its repeal was to allow commercial banks to underwrite public debt offerings, which in many respects has been a huge help for the economy.
What really changed was that, before late 2007, when the treasury group put on a hedge or a prop trade, the outcome was strictly a matter for management and shareholders to live with. The problem post 2007 was not with the banks, many of which perhaps should have been allowed to fail in 2008, but the US government which told the taxpayers to bail them out.
I am guessing that everyone who is reading this understands this logic, but, like me, Todd Johnson, jdhd and daro, we are all wondering why our elected officials don't understand, or even worse, why they won't.
FAMCO
Unlike MF Bozo, the money didnt "disappear." The other side of the trade Received the 2 billion.
Any bank CEO who has an almost 20 year run managing a bank like Jamie with only a small % loss needs a statue out front of the bank. Two billion sounds like a lot but not relative to the size of JPMC.
If banks don't hedge the US taxpayer is going to be exposed to massive losses across all the banks.