Comments on: Jamie Dimon should come out swinging in Senate http://blogs.reuters.com/breakingviews/2012/06/12/jamie-dimon-should-come-out-swinging-in-senate/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Acetracy http://blogs.reuters.com/breakingviews/2012/06/12/jamie-dimon-should-come-out-swinging-in-senate/comment-page-1/#comment-9361 Wed, 13 Jun 2012 12:25:28 +0000 http://blogs.reuters.com/breakingviews/?p=12159#comment-9361 Mr. Cox, your premise that JP Morgan only has to answer to its shareholders assumes 1) shareholders have any power over Morgan’s leadership, 2) JP Morgan isn’t relying on tax payer institutions to back up its risky trades (FDIC, FED, etc.), 3) that derivative trading losses are just a bank taking risk. All 3 premises are completely false.

As we know, JP MOrgan’s acquisition of Bear Stearns relied 100% on the back of the US Treasury; shareholders in today’s corporation have NO say, unless you own a block of 10% or more; and derivative trading is not banking, it is gambling. However, at least most good gamblers understand and know their odds. Jamie’s lieutenants obviously don’t.

What is remarkable is how JP MOrgan’s board has been absolutely mum on Dimon’s leadership lapse. And the board is there to protect the shareholders’ interest. Not here.

And Dimon’s premise that the regs against prop trading will kill bank profitability now ring very hallow, and US Bankcrop has shown us all how traditional banking can work and payoff shareholders very well.

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By: breezinthru http://blogs.reuters.com/breakingviews/2012/06/12/jamie-dimon-should-come-out-swinging-in-senate/comment-page-1/#comment-9360 Wed, 13 Jun 2012 12:17:13 +0000 http://blogs.reuters.com/breakingviews/?p=12159#comment-9360 We don’t need to be reminded of how banking involves taking risks, but those risks should be reasonable. In this case, the risk involved naked hedging for profit rather than to reduce potential losses.

I don’t give a good goddamn how much money Dimon loses as long as he doesn’t expect for one second that taxpayers are waiting at his side to nationalize his losses… again.

His shareholders should be worried about 2 billion in losses. HIs bank also has a lot of exposure to Europe, so his shareholders better be hoping that JPM has properly hedged that exposure.

If JPM’s losses become so great that the bank becomes unstable again, then it should indeed be nationalized… lock, stock and barrel… not just JPM’s red ink. And if Dimon is found to have undermined/circumvented/ignored laws designed reduce the risk of collapse to the US financial system, then he and those who aided him should be prosecuted under federal RICO laws. That should result in stiff prison sentences and the forfeiture of all of the personal assets accumulated by Dimon and his band of pirates (perhaps even a few buccaneers who work with Dimon rather than for him).

If, in the pursuit of profit, they have recklessly jeopardized the financial well-being of US, they should also be tried for treason.

If Dimon comes out swinging, he risks having the tar-and-feather-Wall Street gang showing up en masse with shovels and pitchforks. If he had knowledge of what was going on (and I believe he did), he should just resign in disgrace.

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