All Commentary
Thursday, June 28, 2012

JPMorgan Trading Loss May Reach $9 Billion


“The growing fallout from the bank’s bad bet threatens to undercut the credibility of Mr. Dimon, who has been fighting major regulatory changes that could curtail the kind of risk-taking that led to the trading losses. . . .

‘Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,’ said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.” (New York Times)

The hearings mean Congress already decided you should not incur major losses. If you do anyway, well, there are always taxpayers to bully. If you don’t, well, enjoy that private island you just bought.

FEE Timely Classic

Casino Banking” by Gerald P. O’Driscoll, Jr.