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The Senate Banking Committee, led by Chairman Richard Shelby (R) of Alabama, held a hearing yesterday on the JPMorgan Chase's admittedly "stupid" trading bets that lost the company at least $2 billion in a very short amount of time. Was the hearing intended to further embarrass the banking giant? Demand answers for what happened? Hardly.
Shelby, generally known as the banking industry's best and most well-funded buddy, held the hearing to berate federal regulators.
As Dana Milbank explained, Shelby pestered Gary Gensler, head of the Commodity Futures Trading Commission, on when, exactly, his agency learned about JPMorgan's mismanagement. When Gensler explained he learned of the bets through media reports, just like everyone else, Shelby pounced.
"Press reports!" Shelby echoed, with mock surprise. He smiled. "Were you in the dark?"
Gensler tried to explain that his agency does not yet have authority to regulate the bank, but Shelby interrupted. "So you really didn't know what was going on ... until you read the press reports like the rest of us?" he asked again.
"That's what I've said," Gensler repeated.
But Shelby wanted him to keep saying it. "You didn't know there was a problem there until you read the press reports?"
JPMorgan Chase has given Shelby tens of thousands of dollars in recent years, and it got its money's worth yesterday. As Milbank added, "The trading scandal at JPMorgan highlighted the urgent need for tougher regulation of Wall Street, but Shelby's harangue was part of a larger effort to use the scandal as justification to repeal regulations."
Exactly. Shelby shrieked in glee during his show-trial hearing yesterday, arguing that the Commodity Futures Trading Commission struggled in its oversight role during JPMorgan's mismanagement, which in Shelby's mind, means the Commodity Futures Trading Commission should have a weaker oversight role.
I've been trying to come up with a metaphor Shelby might understand. Let's try this: imagine there's a fire department that's having trouble learning about and putting out fires.
In our hypothetical, this fire department has employed capable people, but they lack the tools and resources to quickly identify where fires break out, and get to the scene in a hurry.
If we follow the logic Shelby relied on yesterday, the appropriate response to this hypothetical is to give the fire department less power and fewer resources. After all, they're struggling to complete their assigned tasks, so the department is clearly not to be trusted.
The notion of improving the fire department's tools and resources, allowing its capable staff to do its job well, never enters the picture.
We're seeing this dynamic play out with Wall Street. Milbank went on to say:
It's true that Dodd-Frank, the legislation responding to the 2008 economic collapse, hasn't worked -- because it hasn't been put in place. At the heart of the proposed reforms is the "Volcker rule," named for a former Federal Reserve chairman, which attempts to separate banks' gambling from their government-backed deposits. This mimics the situation before the Depression-era Glass-Steagall law was repealed in 1999.
Banking lobbyists managed to weaken the Volcker rule in 2010 by securing exemptions. Even the watered-down version has been slowed by a barrage of objections from executives -- none louder than Dimon. And regulators ¬haven't had the funds to keep up with the workload. The result is that key parts of the law haven't been implemented.
Now industry-friendly lawmakers are using the scandal to discredit never-implemented regulations.
Milbank assumed JPMorgan will win the argument on Capitol Hill, not because it's right, but because it's invested $20 million on lobbying and campaign contributions in the past three years.
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It amazes me that Jamie DImon still has a job. And I just love the way they throw around the $2 billion figure ($3 billion? $5 billion? Do they even really KNOW????) like it is pocket change. Do they not understand that myself and millions of other people don't have jobs, yet they flushed $2,000,000,000 down the toilet? The bankers disconnect to the rest of the American people is seriously screwed up. And that the banking committee doesn't see that their is a problem just adds insult to injury.
Jamie Dimon isn't worried, he'll just go to the tax payer to get the money back.
But you have to look on the bright side of this scandal. As Mitt says, "Well if JP Morgan lost it then it means that someone else made $2 or $5 billion in the deal" That makes it a success in Mitt's world! I don't' know why we should be unhappy? This is, after all, what the Republicans want us to all embrace in 2012.
This will be a great sound bite for the Obama campaign if the people do not forget about this JPMorgan incident by the time they vote.
And conversely, all of those jobs that Mitt "created" were offset by other people losing their jobs. Any time one part of the economy loses, another part gets ahead -- and vice versa.
Which means that Mitt can't do any more for the economy than Obama has.
@ George H: Absolutely!! The bankers and banking committee (and especially Mr Shelby) don't live in the real world - it's fantasy banking to these guys, where when things go bad they propose to regulate less. Bet things would be different if there wasn't money in it for someone, Mr Shelby! Just saying! You know it's true... wink, wink...
These guys are utter morons. How can we have such stupid people in government and banking? Someone explain it to me, please. Perhaps I'm too stupid to understand? But, you know, I don't really think that's it. :)
There's no explanation. We've evolved a system where idiots are given power and immunized from the consequences of their stupidity. How that happened when there are plenty of smart people is a mystery, although maybe it's possible that stupid people are able to achieve what they do because they are not held back by any rational ability to assess risk.
you know what they say ... A billion here a billion there sooner or later it will add up to real money.
Just one more example of how money has corrupted the political process.
I love your post. I just understand everything, thanks to your blog. Very well written.
Please visit http://chriscrosby.net/blog/2012/03/16/americas-gas-pains/
There is one topic that does deserve note and that is hell. We know in our world at times with all these corrupt people that cause trouble and despair for everybody, we all can experience some form of personal hell. But as they say and as I’ve been told about the existence of a hell in the afterlife, we really fail in knowing who really gets sent to hell and why. Because here is a situation why, people go to church to pray or in some cases to confess their sins, but than some people leave and continue their activities of putting people into despair and misery. And we have a case that what people refer to as God, that God does know if a person is really sincere about their sins or not. And a person who prays or confesses their sins who has no real intentions of changing is not really gaining anything, except deceiving themselves and others. But the one thing we were given was Jesus for the forgiving of our sins, but really it is only based on if we are sincere and do want to change for the better. So what is for the better, well that would be not to put people into misery, despair, and violence and creating a better world for everyone. In addition to this though is to have good church leaders that really do teach the right things of love and compassion and we must always be careful to have the right ones. And these days we are seeing too many of these church leaders that are looking to cause misery, despair and violence upon people. Just remember these church leaders can go to hell as well as anybody else.
What are you talking about? Does this have anything to do with JPMorgan Chase, the Senate Banking Committe or the corruption of money in politics?
I would like to know that, too. My eyes glazed over after the first sentence. Why do people bother posting stuff like this that is so far off topic? No one reads it!
Better yet, why don't the people at Maddow Blog delete posts that are off topic? The New York Times does that. Who is moderating here?????
Small point, perhaps, but Shelby (R) is Ranking Member, not Chairman. Last time I looked, the Democrats held the majority in the Senate. Note I do not say control the Senate. . .
Senate Banking Committee 12 Dems 10 Repukes
Among the dumbocrap side...
Chairman - Tim Johnson DINO (SD)
Member - Schumer Sometimes Democrat (Wall Street NY)
Member - Tester DINO (MT)
Member - Menendez (Wall Street NJ)
It appears that Wall Street has the majority on the committee!
Among the repuke side...
Shelby, Demented, Moron (KS), Toomey, Vitter (Pampers)
And that is why we will not get any significant Wall Street and bank reforms. Unless the Dems win the Senate and change the membership on the committee, we will get more inaction. I hope Durbin becomes the Senate majority leader because he has no great love for the banks. Maybe he can shake up the committee.
Richard Shelby (R) of Alabama can't be a committee chairman in a Democrat-controlled Senate, right? And I was under the impression that only the majority party could hold official hearings--or is that just in the House?
Tim Johnson is Chairman. Second error this morning. Wrong headline and now this.
Tim Johnson is the Chairman not Shelby. Shelby is the Ranking Member!!
Cheap shot: Why is somebody from Alabama charged as Senate Banking Committee Frontman?
Cheaper shot: Seditio!
The same analogy (fire department) would be appropriate for public educators; cut budgets beyond the bare mininimum and then blame teachers for the failure of students (plus make up your own defintion of failure so that even success qualifies as "failure").
Shelby and the rest of the GOP prostitutes need to be voted out of their jobs! Their feigned ignorance at why the regulators have been hamstringed by Congress's unwillingness to believe that regulations work is part of the problem - the other part of the problem is that they have betrayed the confidence of the people that voted them into office for their corporate masters - and that's treason! The fact that the sheeple refuse to connect the dots to help them understand this and therefore continue to support these traitors with their votes shows how dumbed down the electorate has become!!
Barney Frank fought tooth and nail to separate funding and congressional approval hindered process's from the FRANK DODD act to no avail , the dems folded , and obama should have vetoed the bill for just that reason , frank said these things would make the bill a joke ( or even attempting to implement it ) , all thanks to the gop , whose main goal is dysfunctional government and lining their own pockets in the process
Its like having a well trained fire department and not letting them have any gasolene to run the fire trucks....
But it would be okay to give them the gasoline to start the fires, right?
To call Shelby an opportunist would be kind. He is the worst kind of cheating liar. Lining his pockets while selling out his constituency...
If we win this next election, and I sure hope we do, it will be up to us to remove the vermin like Shelby who have spent decades in selfish pursuits... at our expense.
Unfortunately, the people of Alabama will continue to elect this jerk which means we can't get rid of the vermin. Sad, but true...
When NASA wanted to close their offices in Birmingham, Al. Shelby stepped in and blocked the closure. He did this AFTER arguning Obama was spending too much money. Just another teabagger that believes big government is okay as long as they don't have to pay for it.
Why does a Republican lead the Senate Banking Committee?
Shelby is just creepy, slimy from the word go,........he's like a movie character making deals in some smokey, dimly lit back room with the good ol' boys,.....Boss Hogg.
Of course, for physical resemblance to Boss Hogg, no one beats Haley Barbour. I can just picture Whaley Blubber guzzling his mint julep (preferably while stuffing his face full of pork rinds).
I am beyond disillusioned, disheartened and just plain exhausted by the greedy and self-centered lawmakers in our government. On the whole, our elected government is run by a bunch of unethical, greedy, selfish pricks who know that they will get away with it because the good guys are too outnumbered to do anything and most voters are too disinterested and stupid to care. The old adage, "you can't fight city hall" has become "no one can do anything about the extent of corruption in all levels of government".
I hate where my country is headed and detest the lack of scruples exhibited by our representatives. I am ashamed of those that represent our government and weary of the extremist religious idiots that are trying to exert their will on everyone else.
Corporate America and billionaires run this country and now they don't care who knows it. I want my country back. There are no statesmen anymore. There are so few gentlemen. There are far too many loud mouth, vulgar bullies who want to take us all down to their level. All we can do is go out and vote for the best possible candidate and it certainly isn't anyone in the Republican party. The president may not be perfect (far from it) but the alternative is beyond the pale.
I ask again, does anyone know why a Republican leads the Senate Banking Committee?
Does not...
The Maddow Blog is having an 'accuracy issue day'.
That's what I thought (but was too lazy to look it up). Thanks SadOldVeteran.
Why is a Republican chair of the Senate Committee anyway?
DisgustedWithItAlll Tim Johnson (D) is the chairman and leader of the banking committee. Shelby has the second highest rank and can act like an ass if he wants to lol. Actually I would have thought that no republican would ever be elected again after the big devastation they caused on America under the Bushwhacker but it seems that the people with billions want a theocracy and because those with a sheep mentality just follow along. The religious republicans ( I won't call them right because their not) will be the end of us all if people don't wake up and I'm just glad that I only live a few miles from Canada because if they get Romney in I'm headed for the border quick and I won't be the only one.
This sound like a mock hearing just like the BP hearing.... Mr. Gensler, should have threw back in his face, 'If the senate stop blocking tools to implement to do their job, they would been on top of it.' But since is a blame game hearing to look good on TV for Sunday talk show this hearing is worthless...
Wake up STEVE BENEN!
It has been 2 1/2 hours since this blog was posted. Way past time to get your head out of your rear and correct the BIG TIME MISTAKE in the FIRST SENTENCE of this blog!
Game is Arrogance, it impresses many, but like tyrany has no place in America. Lite a candle follow it.
In the pitch black darkness pick up a lead a thread somewhere along the economic pathways, if it’s a rope follow it hand over hand it back and forth and remember everything you learn. Imagine you will find junctions, where one thread splits into two, and mark in your mind where these are, continue as in a maze, and impress on your mind that the economic system is great web. All points and facets are connected all the points of knowledge entangled, and as the drivers of all pessimism and despair there is one evil above all. The nightmare is caused one premise if this horror movie, it the narrative that you cannot forget anything. If humans could not forget their knowledge and their experiences they would be driven insane, previous evil transgression would not be forgiven. Pick your worst horror and let it permeate you.
Suppose you were a minor government servant in a government where the minions of elected officials ruled arrogantly, you might think that a government servant and a government elected official might work hand in hand together toward the selfless goal of making government work, of proving I deeds that you were serving the public patriotically, your land, your country, your constitution. The poison working its way is arrogance, it looks like this fellow: Mr. Arrogance; Richard Shelby, Alabama's senior United States Senator, Ranking Member of the Banking, Housing, and Urban Affairs Committee, Shelby is also Ranking Member of the Commerce, Justice, and Science Appropriations Subcommittee, and a senior member of the full Appropriations Committee and the Special Committee on Aging.
In the state that elected him arrogance is seen as positive characteristics, since it looks like a noble use of power, when it really a wet the bed form of immaturity and undeveloped brain power. Arrogance is the mask worn, when respect is not earned, and passerby's mistake it for confidence and leadership when they haven't so much as opened a dictionary.
The farcical hearing of the government servant unfairly chastised shows the huge deficit and weaknesses of Senator Richard Shelby. The public does not know that in a hearing the POWER is held by the Senator, who as would a Judge appropriates to himself all power, and the power to hold whomever in contempt. This is why the founders sought to assume that someone elected to the august body of the Senate would be able to restrain their most emotional challenges to serve the country and the Senate over the typical pettiness that should have been foreseen by the electorate before election. The character of this Senator is representative of the worst evil the founder avoided, the arrogance of power. In words and in deeds the member of the founder class of 1776, the source of this southern inferiority complex is in the lack of understanding that the south was forgiven for the Civil war, was expected to do the same and move on with the national's interest. However the stars and bars serve a symbol of the fact that the south did loose. The arrogance of this Senator condemns all who wish to put out of history the useless hatred of the last 160 years.
This is the source of pessimism, in proforma, this Senator always acts this way, and earned the arrogance tag and does not see that harm he does to the nation, to the government and is forever impervious to seeing himself humble, and the United States of American is not well represented.
From this source we have: http://maddowblog.msnbc.msn.com/_news/2012/05/23/11828894-shelby-shows-how-the-game-is-played
"Press reports!" Shelby echoed, with mock surprise. He smiled. "Were you in the dark?"
Gensler tried to explain that his agency does not yet have authority to regulate the bank, but Shelby interrupted. "So you really didn't know what was going on ... until you read the press reports like the rest of us?" he asked again.
"That's what I've said," Gensler repeated.
But Shelby wanted him to keep saying it. "You didn't know there was a problem there until you read the press reports?"
The arrogance is palpable, any defensive remark by the respondent, subjects the respondent to the charge of contempt of Congress, and if the respondent would not accept the shutdown by Senator Shelby he would be jeopardized, Shelby is the arrogant accuser, the self-appointed judge and controller of all that is said in the hearing, and even of rewriting of the respondents words.
Of course the hearing was political show trial, and was part of the 4 year's long assault on a sitting president, and horrifying sign of the times to wantonly sweep into detritus the United States.
The country was plunged into the deepest economic crises while Senator Shelby ruled the roost, the crisis was not just accidental, but deliberate. The dozens of other Shelby's of the Senate and the House, have fought to "reasons unknown" to force the government into private hands of control, by the example above to exercise its fearful prospects. When a government servant is not given the funding and the resources needed to carry out laws, and is denied any defense, and can be threatened and intimidated and abused, his family put in fear, what is his recourse, how can anyone fight this arrogant Senator on high?
If the respondent above was supposed to witness corruption of a banker then why you expect him to perform his when bound, shackled and muzzled? How the can the arrogant one question response without letting him speak? The contempt for "Senator Shelby" has no limits, and the contempt casts the Congress into utter darkness, and that darkness spreads across all governments, all government servants, and the believers in a just God must practice those beliefs in the darkness, in the shadows of all corruptions and grown as mushrooms in the dank and darkness.
The pessimism in the economy has a root cause and it is in the arrogance show and sown by this Senator, Shelby. It is the arrogance of money, the thirty plus years of hinged and leveraged greed, the well-funded belief that no one but the arrogant and self-appointed rich has any standing in the face of Congress. It not the public that has all but put an end to this Nation's time, but it the Senators like Shelby who have sold the Nation for his own pride, his arrogant pride.
This diagnosis has daunting prognoses, the arrogance of self-pride must be ripped from elected officials, but was we wander helpless in the darkness of the sorrowful and entangled economic web we have but one candle of brightness to lead us out, if that fails then the candle may burn down and ignite the darkness, otherwise we will just pretend that dark is light as the honest senator suggests.
The problem may be big, but the solution is far from being impossible.
If can fix a flat tire, you can fix an economy.
Unfortunately, given the political climate here in Alabama, I am doubtful that Shelby will ever be voted out of office. For every person here that recognizes the sheer ridiculousness of Shelby's remarks, two will sping up that back Shelby's stance on this particular event and deregulation in general; people you might otherwise think were well educated, until they opened their collective mouths. One would think that living here my entire life would allow me to become accustomed to the application of such backwards logic. Well, it hasn't.
You expect a good ol' boy pol from Alabammy to be honest?