Associated Press
In the financial world, the biggest story of the day is JPMorgan Chase. As Matt Yglesias explained, "Remember the 'Volcker Rule' that was supposed to stop systemically significant financial institutions from racking up huge losses on proprietary speculative bets? Well ... JP Morgan CEO Jamie Dimon announced that his company just lost $2 billion on some of (French-born) 'London Whale' Bruno Iksil's bets on credit default swap indexes."
The New York Times added that bank reformers are saying "we told you so," and getting a boost in their efforts to impose tighter industry regulations and standards.
There's a political angle to this, of course, in part because government regulations in this area are still taking shape. It's also notable that Dimon, a former ally of President Obama, has moved to the right and started meeting privately with Mitt Romney, even attending GOP fundraisers.
But this also seems like an appropriate time to also mention that Romney, if elected, intends to eliminate all of the new safeguards imposed on Wall Street, replacing them with, well, pretty much nothing.
Republican Mitt Romney is pledging, if he is elected president, to repeal the Dodd-Frank financial regulations, a position favored by donors on Wall Street who have sent millions the candidate s way. But he is nearly silent on how -- without the regulation -- he would prevent Wall Street from once again engaging in the risky practices that helped cause the 2008 financial crisis.
The gap in Romney s platform -- made more notable as, at every turn, he criticizes President Obama s handling of the post-meltdown economy -- has puzzled some economic specialists.
"He's asking for permission to govern the country -- but he's saying do away with the government's response to the Wall Street crisis,'' said Cornelius Hurley, director of the Morin Center for Banking and Financial Law at Boston University.
Indeed, Romney not only wants to scrap the entirety of Dodd-Frank, created after Wall Street recklessness nearly collapsed the global financial system in 2008, the Republican also wants to eliminate Sarbanes-Oxley, created after the 2002 accounting scandals, including Enron.
At a certain level, this seems like political suicide, though the Republican clearly doesn't see it that way.
Just four years after Wall Street pushed our financial system to the breaking point, Romney is effectively telling the public, "Vote for me so I can roll back the clock and make things easier on the Wall Street elite." It's anti-populism at its most craven.
But Romney believes the public hates government regulation, too, at least as much as voters hate Wall Street, and he can win a national race while promising to eliminate safeguards and layers of accountability in our financial system.
It's a risky bet, on par with Dimon's.
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Why would Mitt or Dimon care since it is not their money?
The $2 Billion loss is just the tip of the iceberg. That was announced just to get the Stock Market used to it. It will end up being MUCH worse. And YOU KNOW they will be at the government trough asking for a handout if it threatens to take down the economy.
Do you think Jamie Dimon will give back HIS salary which was $20.8 Million just for last year alone, or the fact that he's been guaranteed $23 Million for this year?
Jamie Dimon thinks that Geithner and Bernacke "saved" the system. Does that give you any creepy feelings? It does me! That whole interview gives me the creeps because it really shows how he says one thing and totally does another. In 2008, Dimon was an Obama supporter (wonder why we don't have any REAL banking regulations?) but this year he is trying to be a Romney supporter (go figure!). Maybe now that he's in trouble, he'll go back to being an Obama supporter.
http://www.investorplace.com/2012/01/jamie-dimon-ceo-jpm-jp-morgan-chase/
Then there's this:
Dimon touted as Geithner's successor:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6638232/JP-Morgan-Chase-chief-executive-Jamie-Dimon-touted-as-successor-to-US-Treasury-Secretary-Tim-Geithner.html
Soooo, now that this has happened AGAIN, do you think Obama will FINALLY figure it out and get rid of Geithner and his "protectionist" policies for the major banks??
The best yet was on Bloomberg this early AM wherein a talking head blamed Ben Bernanke for JPM's risky behavior on the theory that available safe returns are so low. leaving out that the Fed's rates to JPM are even lower. Of course, it is unlikely that JPM is the only problem child; there never is just one roach.
And the redistribution of wealth upward will continue so long as the wealthy have their fingures on the pulse of the low-information voters among us.
Romney and his avarice ilk are running a classical Machiavellian campaign - dust up the place with fret and confusion, bend the maleable spirits of the lesser minded, herd the masses into the polling place with dispair and suspicion, and presto, wealth can be preserved for those he knows deserve it by talking a majority of the Amerian electorate into voting against their own interests!
And the MSM are complicit! -Kevo
I like this comment Kevo. I just wish people would stop referring to the MSM. They are the COM (Corporately Owned Media)!
Why hasn't anyone brought up the fact that, unlike the '29 depression, where everyone lost money, the only ones that lost this time were average Americans while the rich got even richer making record amounts? And are still getting richer and still making record amounts.
Because it interferes with the conservative narrative that these guys are the risk taking job creators. Which is a bogus narrative - they're not taking risks with their own money, but with other peoples'. In '29 they could lose their shirts because they were risking their own money. These days, even though they would have you believe that they're super geniuses who deserve outlandish rewards for taking big risks (hint: it's not your risk if you don't stand to lose, buddy) but it's not their personal fortunes at risk. What do you want to bet their shareholders take a bath on this, as will pensions and 401K accounts, but everyone on payroll at Chase, up to and including Dimon, gets a big fat bonus this year?
And, as with so many issues that the public agrees with Democrats, the politically incompetent, spineless Democrats will lose. Again.
Why wouldn't the Wall Street types want a replay of the 2008-9 collapse? They continued to rake in their ridiculous bonuses, despite almost causing a worldwide depression. CEO pay is as obscene as ever. Banks get as much all-but-free money as they can cart off from the Fed. They pay virtually nothing on the money in savings and money market accounts. They dumped the risk and losses off on the poor and the middle class. And, despite massive fraud, not one single bankster was held legally accountable.
Why not go back to massive speculation?
Same old, same old. The head cheese says no problems a month earlier--blaming the media. In less than a month, a Minimum loss of two billion. So does he get fired for being so out of touch? Of course not! And just how does JP Morgan make it up?
Loans to poorly educated people on their credit cards of 20-32%. Not enough?
Borrow from the Fed or taxpayer at 0.02% and buy bonds of little risk from the government at 2%. Borrow a hundred billion from the people and you have made the two billion with no work. Gotta love fascist banking.
So this happens on President's Obama's watch and some how this is a problem created by the Republicans. President Obama has had plenty of time to develope what ever rules are necessary under Dodd Frank but has not done so. Notwithstanding likely they will claim not only is the fault of the republicans but GWB as well.
Why do these people believe that they can play with fire and not get burned?
thats specifically why America doesnt need Romney in office. WallStreet has caused too much harm to our economics with their wild rampage of currption in our financial markets. corporations need to be held accountable and so does Wall Street fatcats that dare to cheat our system. The republican party itself has been bought lock, stock, and barrel by billionaire airheads that are bent on destroying the very country that helped made them just to make an additional dollar they really dont need. ALL OF YOU RICH PEOPLE SHOULD BE ASHAMED OF YOURSELVES, YOU HAVE GIVEN UP YOUR RIGHT TO CALL YOURSELVES AN AMERICAN IF YOU HAVE COMMITTED ANYTHING TOWARDS THE ECONOMIC DECLINE OF OUR COUNTRY.IF any of you all actually cared to call yourselves a true AMERICAN,you will support Obama in the genral election. A vote for any REPUBLICAN who has signed any petition by Grover Norquist is a vote for the apocolypse of America. PAUL RYANS BUDGET PLAN DECIMATES THE AMERICAN ECONOMY. Quit being racist and allow Obama to finish getting us out of the ditch that REPUBLICAN rule has put us in....
remember what grover norquist said, all the republican party needs is a canidate with enough digits to sign whatever they want. i suppose they also need him to be dumb enough to take the blame for it all and not ask questions...... they are all saying mitt romney is that guy...omg! its gonna be willard and the republican rats! lmao
the B of A action occurred under President Obama's watch and under the watch of regulators that he appointed-this is his "fault"
Dear Rachel, Where is your stand against homophobia? You have come out against the repubs war against women, the war against homosexuals is at least as old as that, it's been going on for thousands of years, notably in the ancient tribal writings of the old testament, and the modern day exponents of these heterosexual ravings, The republicans have a 'war against gays that you have failed to acknowledge. Are you afraid to announce this on your show? It seems very obvious to me, look at the political and religious anti gay diatribes by these republicans and their preachers. I can understand your standing up for women, and denouncing the 'War on Women' but why not mention the war on gays. So far in the war on gays there have been no casualties on the straight side, only on the gay side. Look at the gays who have been killed, beheaded by Muslims, millions of gays throughout history who have been b burned at the stake, killed by Hitler, persecuted by every straight that has ever lived. Casualties among their oppressors.....none. Do you think you are strong enough to take on these adversaries? If you do, declare that there is a 'war on gays' you will become the Joan of Arc of millions of gays dead and alive who will bless you for it' Like Obama, you believe that people can be swayed by love of humanity, and change their hearts and minds. I'm sorry to have to inform you that straights wish that their children be dead rather than to be gay, they have no hearts or minds. That should open your eyes. There is a war between gays and straights, you have sued for peace and mercy unfortunately for us, they don't know what these words mean. You are naive to think this. If you took an anonymous poll of parents of gay children and asked them if they would have preferred to have a gay or straight child, I would guess most would say "straight", with the possible exception of your and Ellen's parents. I have been gay for 80 years, and I know what I'm talking about. Acknowledge that there is a 'war against gays' and I will respect you.
dodge this , and I'll put you as alongside Obama, catering to the homophobic right. Homosexuals are non violent, that's probably why they have never banded together to protect themselves and have been destroyed routinely by the religious right who have always been virulent Anyone who adheres to the concepts of destroying people who are sexually different than they are, must face the same fate they have decreed against their victims.
this whole election is being narrowed down to straight againt gay, republicans against democrats. All the reoubs have going for them is their anti=gay stance,all the democrats have going for them are blavks and other intelligent minorities, left leaning intsllectuals, gays and anyone out there who believes in equal rights. Throughout history the enormous contributions of gays to the world have been denied by the straight majority, as soon as a gay becomes prominent and known to be gay, the straight majority zooms in and proclaims these geniuses to be straight and try to denounce any gay evidence as being FRAUDULENT! Look at Shakespeare. Michelangelo, ad ad-finitem, I have made a life study of this strange phenomenon, famous gay geniuses changed into straights miraculously by the straights! And these gay geniuses' straight families and others attested to these revisions of history, because they were afraid of the power of straight society which was then based upon hereditary rule which ruled out being gay. Hereditary rule does not exist anymore except in the demented minds of straights who believe that their children were created by 'them' and should reflect them and their values, sorry straights, we gays were born to prove that we are not reflections of you. We declare our differences early...you did not create us, we came straight from the cosmos, unblemished by your world. I SALUTE THE MOST INTELLIGENT, KINDEST, MOST TALENTED, (MOST OPPRESSED, DISCRIMINATED AGAINST, MISUNDERSTOOD, HATED ) PEOPLE WHO HAVE EVER DRAWN BREATH ON THIS PLANET. LGBT PEOPLE
1. I suppose this could be called a manifesto of sorts. I have observed these things all of my life and there is plenty more I can share with yiu.
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