Dimon in the rough
Jaime Dimon, Obama's "favorite banker," is in a few inches of boiling water after his bank, JPMorgan Chase, reported a $2 billion loss in the last quarter as a result of risky trading. The company's stock value dropped 12% in one day last Thursday upon news of its losses and the Justice Department launched an investigation into the investments that Dimon admitted were "flawed, complex, poorly reviewed, poorly executed, and poorly monitored."Dimon, a Democrat, reportedly makes $100 million annually, and Chase Bank was the recipient of $390 billion in emergency fed money under the TARP plan. Furthermore, Dimon has been an outspoken opponent of greater government oversight of the banks, particularly critical of the "Volcker Rule" that restricts banks from engaging in particular kinds of speculative investments.
The lesson here is that perhaps even the most respected of our Wall Street casino gamblers shouldn't be allowed to act as his own boss. The assets of JPMorgan Chase equal $2.3 trillion, which is roughly the same value as the GDP of Great Britain, yet Chase's Big Cheese knows he's gambling with house money as there's approximately 0.0 chance the bank won't be bailed out by taxpayers every time it's needed. The next crash should be arriving, oh, about a week from Thursday.
Say what you will about Dimon though, at least he never gave Albert Pujols a $254 million contract.
posted by CM @ 5:45 PM
1 Comments:
At the time you posted this - Dimon could have bought a team and used his $2B to put an Albert Pujols at every fielding position, and he still would have had less homers than Carlos Beltran. But, the Cardinals still suck!
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