Jamie Dimon (JPM) is a hero - "our Pericles" - on Wall Street after directly challenging...

Jamie Dimon (JPM) is a hero - "our Pericles" - on Wall Street after directly challenging Bernanke on whether too much bank regulation might be hurting the economy. But Robert Reich reminds Dimon that "a few years ago, before any stricter regulation or oversight went into effect, he and his colleagues on the Street almost eviscerated the American economy."
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Comments (14)
  • fodget
    , contributor
    Comments (8) | Send Message
    Plenty of people had a hand in "almost eviscerated the American economy." Government played an equal role and to think they can fix it with even more regulation that failed then is just plain silly thinking. Only good guys follow the rules and pay the heavy price of regulation, the bad guys are still bad. Figure out how to fix that, the silly folks in government never will.
    8 Jun 2011, 05:24 PM Reply Like
  • montanamark
    , contributor
    Comments (1455) | Send Message
    including reich. all this "advice" from liberals after the fact
    8 Jun 2011, 05:40 PM Reply Like
  • Jasper M
    , contributor
    Comments (1652) | Send Message
    Dimon, and Robert "Third" Reich . . . what, is there a race to the bottom for spokesmen?
    I propose we give a bowie knife to each, and lock the two of them in a darkened room. Whichever one fails to exit . . . we Win!
    (no, it's not original – proposed to end a feud between congresscritters long ago)
    8 Jun 2011, 05:33 PM Reply Like
  • HiSpeed
    , contributor
    Comments (1300) | Send Message
    This is giving the big banks too much credit. The REAL hat-tip for "almost eviscerating the American economy" goes to the advocates (like Frank/Dodd) of FNM/FRE who acted as if home-ownership was one of the benefits of being an American citizen, as opposed to actually having the means to pay for a home. The big banks and ratings agencies incompetently played along with what the 'redistributionists' in congress were championing.


    To not repeat history, let's remember that putting 10%-20% down on a home will always be a good start!
    8 Jun 2011, 05:37 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    I am sorry for what I am about to write.
    This crap placing 100% of the blame for the financial melt down on the banks is complete B___ S___. Reich has had his head up some very dark orifice if he truly believes what he says. The majority of the blame for this mess lies squarely on the shoulders of elected officials in Washington DC. It has come about as a direct result of numb nuts on Capitol Hill abdicating their responsibilities to the people they represent and kissing up to the lobbyists hired by special interest groups. I grant you that the banks have hired some of the lobbyists but then so has the SPCA and AARP and a whole lot of other "special interest groups". The only group without lobbyists are the citizens of the United States. We are the ones who are really getting screwed. If I were organizing a lynching party I would not start on Wall Street I would focus my attention on the law makers who eviscerated the regulations like Glass-Steagel that were in place to protect the citizens of the United States from unscrupulous financial practices.
    8 Jun 2011, 05:57 PM Reply Like
  • CharlieM
    , contributor
    Comments (149) | Send Message
    For once I must agree with you. IF, we had a government with a backbone devoid of self interest we would OUTLAW Lobbyists.
    8 Jun 2011, 06:25 PM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message
    Moose -


    I think we can all agree that there is plenty of blame to go around for creating the conditions that allowed the 2007/8 meltdown to happen (and in particular that the legislators dropped the ball by allowing the regulation and oversight requirement provisions governing the financial industry to be gutted and that the regulatory agencies compounded the problem by their lax or non-existent enforcement of the weakened regulations that remained). I don't think anyone is suggesting that the investment banking industry was solely at fault simply because so many of its participants took full advantage of the gaping holes in the regulatory and enforcement programs.


    That said however, Jamie Dimon's comments described above were not an appropriate response at this time from someone in his position given all that has gone before.


    8 Jun 2011, 08:04 PM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message
    Given the central role that Jamie Dimon and other senior US investment banking executives played in creating the circumstances that lead to the near collapse in 2007/8 of the US and global financial system, we should now demand more from him when he criticizes proposed new banking regulations. Does he really expect us to accept that the practices of the investment and commercial banks (including their shadow bank associates) prior to 2007 constituted a legitimate way for the financial system to operate and that the only legitimate role of government is to decide, when the financial system in consequence of those practices is periodically faced with the imminent prospect of collapse, whether
    (a) to stand back and let the carnage of a deep deflationary global depression of indeterminate length unfold, or
    (b) to intervene to an unprecedented extent to expend vast amounts of money through fiscal stimulus and create vast pools of ‘new’ money through monetary easing simply to get these banks and near banks back on their feet and back in their former game?


    Jamie Dimon has a chance to suggest from the vantage point of his unique personal experience how best the legitimate functions of investment banking (i.e. the achievement on an ongoing basis of the efficient and effective mobilization and deployment for productive purposes of capital within the economy) can continue but the systemic risks of meltdown of the financial system can be minimized. However, if he persists in simply denying that serious systemic problems exist and that it is beyond the proper mandate of government to try to ensure that these problems are adequately addressed, then he forfeits any reason why we should take his comments seriously.


    Robert Reich (and anyone else for that matter) has a perfect right to say as much.
    8 Jun 2011, 06:22 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
    Jamie Dimon (JPM) is a hero - "our Pericles" - on Wall Street after directly challenging Bernanke on whether too much bank regulation might be hurting the economy.


    Somebody on wall st is saying that quietly after SEC person goes home from their office at the end of the day.
    8 Jun 2011, 06:33 PM Reply Like
  • alpharox
    , contributor
    Comments (380) | Send Message
    Oh, the banks most definitely deserve it for being bad. They should just shut their mouths and take their medicine.


    Too much regulation? It's their own fault. They did nothing but bring it on themselves. After a few years of taking a little punishment, the teacher will be sure to let them back out of the corner, anyway. Then they can go back to their old behavior until they push the cycle back around again.


    They should be happy they've all gotten off as it is.
    8 Jun 2011, 06:53 PM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
    M. Diamond would like to go back to being able to securitize any kind of loan they make, crappy loan or not, cover it up with swaps and get some entity to lever it up. He doesn't want to actually hold an interest in loans because it's just not that profitable. Traditional banking isn't that profitable, unless it can be highly leveraged. These companies really don't want to be banks, they want to be Goldman Sachs. Heavily leveraged junk and synthetics are what blew everything up but it was really profitable. Diamond and his ilk are trying to find ways back to those kinds of profits, derivatives, trading, fees. The profits come from the customers. I, for one, don't want this bunch holding all the cards and like M. Reich, don't trust them to do the best for anyone but themselves. If Diamond doesn't like banking then he should go do something else. Goldman is likely to have some management openings soon.
    8 Jun 2011, 07:42 PM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message
    Pericles is reputed to have mastered the art of rhetoric (he reportedly as a boy suffered from shyness and a stammer) by practicing speech with pebbles in his mouth. Jamie Dimon appears to be mastering rhetoric by practicing with his feet in his mouth. Good luck with that Jamie!!
    8 Jun 2011, 08:12 PM Reply Like
  • jhill35e
    , contributor
    Comments (4) | Send Message
    The government owes a debt of gratitude to Jamie for taking their bailout money for a crisis the gov created. He did not want or need the bailout. The Gov pleaded with him to take it so other Banks would not look bad and cause a run on those institutions. We can blame the banks for being greedy, most Americans are, but the gov is the one that allowed no income verification loans so everyone could own a home. If you want to blame someone blame the Gov.
    9 Jun 2011, 01:58 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    JPM also picked up garbage known as Bear Stearns and Washington Mutual for the Government so Jamie has a right to beef.
    9 Jun 2011, 02:50 PM Reply Like
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