Seeking Alpha

Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies...

Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies coming out of Washington have led to a slower and rockier recovery: "It could have been better. I do think we have made this recovery slower and worse by uncoordinated policy, the debt ceiling crisis and tons of other things that were misguided."
Comments (9)
  • svrionis
    , contributor
    Comments (18) | Send Message
     
    Now if only Washington wasn't so blind...
    14 Feb 2012, 12:14 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Find a mirror and gripe into it, Jamie. You helped get this joker elected president.
    14 Feb 2012, 12:14 PM Reply Like
  • citizenleung
    , contributor
    Comments (235) | Send Message
     
    Dimon prefers the good old days of 1999-2007 when banks could do whatever they wanted.
    14 Feb 2012, 12:17 PM Reply Like
  • 153972
    , contributor
    Comments (692) | Send Message
     
    Let me get this straight, Mr. Dimon has the temerity to rail against over regulation when he and the other Too Big To Fail Banksters were the cause of the Great Recession and almost caused The Great Depression II because of a lack of regulation.

     

    Talk about balls. He has a pair that would make a horse envious.
    14 Feb 2012, 02:03 PM Reply Like
  • gh1616
    , contributor
    Comments (452) | Send Message
     
    It wasn't a lack of regulation, this country hasn't been libertarian since 1906. It was new regulation in 2001 from Basel Committee on Bank Regulation permitting lower reserves when they held MBS versus commercial loans. This resulted in herding banks into dangerously weak MBS. In fact in June 2008 just before the real meltdown 20.6 million of the 28 million subprime & other low-quality mortgages were on the books of government agencies, most held by Fannie & Freddie.

     

    Yet I read posts like this that its all the banks fault. It reminds me of the ad homonym attacks on the oil companies when gas prices spike. Hey maybe we should just badmouth, tax & regulate these companies out of the U.S. I for one am glad Jamie Dimon has the balls big enough to stand up to Regulation-Nation!!! We need more corporate leaders like him!!!
    14 Feb 2012, 08:09 PM Reply Like
  • Scott100
    , contributor
    Comments (12) | Send Message
     
    I fully agree. The attack on the banks has been way over-done and the results have totally slowed the recovery. The banks were just one of a number of participants. There were millions of people who voluntarily took out loans that they really could not afford and there have been truth in lending disclosures as part of the closing process for many years. The unrelenting attack on banks is similar to going after gun shops for gun crime. The government has every day to propose balanced regulation and after an outcry they typically go too far with unintended consequences and in the banks case has resulted in excessive litigation wiping out shareholder wealth (including damaging the retirement accounts of many Americans), scaling back services, reducing staff, and curbing lending to individuals and businesses...which I agree with Dimon is slowing down the recovery. I also work globally and understand the ease of moving business out of America and you are right: gov action will ultimately push out or handicap another critical American industry.
    15 Feb 2012, 04:13 AM Reply Like
  • 153972
    , contributor
    Comments (692) | Send Message
     
    gh1616, When I commented lack of regulation, I should've instead stated lack of effective regulation to ensure clarity. To be sure, from Basel II (as you correctly stated) to the Federal Reserve, to the CFTC, the FDIC, SEC, etc., the regulators were almost all lackeys to the market model that Mr. Greenspan (the bankers favorite banker),and his like minded cohorts at the Treasury, Fannie and Freddie espoused in lieu of establishing adequate capital ratios, risk management, and accurate underwriting standards, etc.

     

    At the same time, Mr.s Dimon, Blankfein, Fuld, Lewis, Prince, Cayne, Mozilo, etc., were authorizing the originating and selling of flexible, ARM, lier, no money down, subprime, Alt A loans then packaging them into securities that were bundled with prime and near prime loans that were summarily rated AAA by the rating agencies that were either hoodwinked by the banks default models or much more likely, they were persuaded to rate them AAA or lose the underwriter's fees in any future rating offering. In short, the banksters were originating garbage then selling it to pension plan and other investors that were duplicitously led astray by Moody's S&P, etc.

     

    At the same time and because the governors and presidents of the regional banks are elected mostly by bankers within their region to their respective offices it is indeed the regional and NY bankers that caused the malfeasance. You certainly don't think in the lax regulatory milieu of Greenspan, Larry Summers, Robert Rubin Bush, Paulson, etc., that an acolyte such as Mr. Geithner and other like minded manicheans at the Chicago, SF, KC regional Fed banks would get nominated and elected without a lax regulatory mindset do you?

     

    Correct me if I'm wrong but didn't Mr. Dimon vote for Mr. Geithner's selection to be the President of the Federal Reserve Bank of NY, as did Mr. Blankfein, et al.? And further correct me if I'm wrong, but didn't Mr. Geithner endorse and politic for TARP?

     

    The banksters immiseration of the US and the rest of world was further compounded by purchasing CDS from other banksters and insurance companies. These so called insurance policies from mortgage defaults, that were NOT regulated, would've caused a worldwide depression had not the Fed and Treasury backstopped AIG, and etc., thereby saving the banksters' collective butts from insolvency.

     

    I have yet to mention the trillions of dollars of taxpayer money that has subsidized the banksters and the further trillions of Federal Reserve printing press dollars transferred to backstop and purchase poorly rated assets on the banks' balance sheets, as well as the low interest policy implemented at a further cost of trillions of dollars to savers, senior citizens and other like minded CD, Treasury, S&L and time deposit investors that cannot or do not want to risk their money in non guaranteed US debt.

     

    So, when I say that Mr. Dimon has a lotta balls for railing against over-regulation, you now know why. The business of banking is indeed to important to be left solely to bankers. They were the facilitator of the Great Recession and the active agent in almost causing the Great Depression II.
    15 Feb 2012, 07:20 PM Reply Like
  • 153972
    , contributor
    Comments (692) | Send Message
     
    Scott100,

     

    Yes, there were individuals that took out loans that had no business taking out those loans and shame on them. There were banksters, however, that lied to their customers and told them to purchase ARM, lier loans, no money down and other flexible loans instead of prime loans that they had originally qualified because the unscrupulous mortgage officer/broker could get a bigger commission and the banks earn more revenue on each flex loan. Moreover, no one put a gun to the banksters head and said they had to fund the flexible loans that their officers had beguiled the banks customers into signing. Have you ever seen the docs on some of these loans? Any bank that funded most of these loans were idiots.

     

    The banksters have also participated in defrauding insurance companies, the US and state governments, mortgage insurers, investors and homeowners through robo signings, faulty mortgage paperwork, HAMP delay tactics, and lack of deed documentation. So if I have to weigh who is more at fault for the mortgage crises, I have to side with the banksters.

     

    The reason the recovery has been slow is because it is a bubble recession caused by too much debt. Every economist from the right to the left have said that after a debt laden economy has the bubble popped it takes anywhere from 8 to 10 years to BEGIN to creep out of the debt problem. It is not the unrelenting attacks on the banksters that is causing them not to loan or potential borrowers from seeking out loans. It is a debt restructuring, writing down your losses, recapitalizing your balance sheet economy. Period.

     

    Banksters are getting sued and settling out of court for hundreds of millions of dollars because they defrauded governments, borrowers, insurance companies, mortgage insurers and etc. You certainly don't think they'd settle out of court for that sum of money if they had a fifty/ fifty chance of winning in court do you?

     

    The banks are laying off personnel because they are further automating their back offices, trading desks, and other work settings. SAP, IBM, Oracle, Anderson Consulting, etc have earned record revenues due to this automation. Have you tried to take out a loan lately. It is all programmed. There is no loan board anymore. This is an example of the automation.

     

    Quit drinking the kool-aid that Mr. Dimon and his minions offer. They facilitated the Great Recession and have taken measures through lobbying in attempt to gut an already weak Dodd-Frank law.

     

    The government didn't cripple the banking industry. They did it to themselves.

     

    15 Feb 2012, 08:14 PM Reply Like
  • Scott100
    , contributor
    Comments (12) | Send Message
     
    153972 So much to respond to in your post but I dont have time at the moment. You are reading way too much into my simple response to the topic....the policies coming out of Washington have led to a slower and rockier recovery... The causes of this mess can be discussed forever and the banks have deserved a lot of what they have gotten but the gov action is slowing down and constraining banks which does slow the recovery.
    16 Feb 2012, 04:05 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|