The GOP Myth of the "Unregulated" Bank Industry [Archive] - Glock Talk

PDA

View Full Version : The GOP Myth of the "Unregulated" Bank Industry


Alizard
05-13-2012, 19:20
I guess you really do get the government you deserve. Just keep believing how wonderful everything is going to be when the government finally just deregulates the banking industry.... I wonder how many trillions will have to burn up before somebody finally implements oversight.


http://www.cbsnews.com/8301-505125_162-57432174/jpmorgan-chase-acknowledges-$2-billion-trading-loss/

JPMorgan Chase acknowledges $2 billion trading loss

JPMorgan Chase (JPM (http://markets.cbsnews.com/cbsnews/quote?Symbol=JPM)), the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money.

The trading loss is an embarrassment for a bank that came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.
"The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought," CEO Jamie Dimon told reporters. "There were many errors, sloppiness and bad judgment."

"The scary part of this is people thought that Chase was the best-run bank, maybe, on Wall Street," said Mason.
The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury.



WHY DID THIS HAPPEN AGAIN, SO SOON AFTER THE WORST ECONOMIC COLLAPSE IN 70 YEARS?

http://www.nytimes.com/2011/09/21/business/dodd-frank-act-is-a-target-on-gop-campaign-trail.html?_r=1&pagewanted=all

Dodd-Frank Act a Favorite Target for Republicans Laying Blame

WASHINGTON — On the stump, words like “Obamacare” roll off the tongue. “Swap execution facility,” not so much.

That has not stopped Republican presidential candidates from using the Dodd-Frank Act, the sprawling regulatory effort to address the causes of the financial crisis, as their newest anti-Obama target for what ails the economy.///

Rick Perry, the governor of Texas, has also called for the repeal of Dodd-Frank. “We have to end it right now,” he said, on the same weekend in the same state as Mr. Romney. Newt Gingrich said it is “a devastatingly bad bill” that is “killing small banks, killing small business, killing the housing industry.” Representative Michele Bachmann regularly reminds voters that she introduced the first Dodd-Frank repeal bill this year.


WHY WE STILL HAVE NO REGULATION:

http://cebviews.com/2011/01/19/political-capital-dodd-frank-update/

It has been six months since the Dodd-Frank Wall Street Reform and Consumer Protection Act became law. While progress has certainly been made on some aspects of the Wall Street overhaul (i.e. movement on the Volcker Rule), regulators continue to work through a painstakingly slow (and increasingly slowing) process to move financial reform from a set of general parameters to specific rules that will affect businesses across a wide swath of industries.////

With Republicans making enormous gains in the midterm elections (http://cebviews.com/2010/11/03/political-capital-democrats-take-a-beating/), the implementation of the Wall Street overhaul is sure to slow to a snail’s pace as Republicans follow through on their campaign promises to decelerate implementation of the Dodd-Frank Act.

Alizard
05-13-2012, 19:28
And as for the political impact.... it will be interesting to see if Romney can hold a straight face while he panders to the neocons screaming about how the government should not be regulating derivatives trading....



JPMorgan Chase Loss Could Change the Presidential Campaign

Chase CEO Jamie Dimon appeared on "Meet the Press" to discuss the $2 billion loss the banking giant suffered. The loss came as a result of risky derivatives trading, (http://www.huffingtonpost.com/2012/05/13/jamie-dimon-meet-the-press_n_1512671.html) according to the Associated Press. Dimon stressed the trading was designed to hedge against possible losses and was not undertaken for profit.
With the economy looming as a major campaign issue in the race for president, news of the loss at Chase could have an effect on the Mitt Romney and Barack Obama campaigns. Here is what Dimon and several key politicians had to say about the $2 billion loss and what it means.

* Dimon said his company (http://www.huffingtonpost.com/2012/05/13/jamie-dimon-meet-the-press_n_1512671.html) "made a terrible, egregious mistake. There's almost no excuse for it." He agreed it had not monitored the investments and took on too much risk. According to CNBC, he welcomed regulators to look into the trading, (http://www.cnbc.com/id/47392516) saying, "We know we were sloppy. We know we were stupid. We know there was bad judgment. We don't know if any of that is true yet. But of course regulators should look at something like this. That's their jobs."

* Barney Frank, the co-sponsor of the Dodd-Frank financial oversight law, said, (http://www.boston.com/Boston/businessupdates/2012/05/barney-frank-jpmorgan-chase-loss-demonstrates-need-for-tighter-regulations/UHZGUycZ5jyeXfGsmVT7vJ/story.html) "The argument that financial institutions do not need the new rules to help them avoid the irresponsible actions that led to the crisis of 2008 is at least $2 billion harder to make today," according to the Boston Globe. He added, "JPMorgan Chase, entirely without any help from the government, has lost in this one set of transactions five times the amount they claim financial regulation is costing them."
http://news.yahoo.com/jpmorgan-chase-loss-could-change-presidential-campaign-181200829.html

barbedwiresmile
05-13-2012, 19:35
It should come as little surprise that a statist can look at a very real problem and draw an entirely wrong conclusion. In a free market, JPM would have gone out of business in 2008. JPM has been a ward of the state since TARP, kept on life support thanks to ZIRP and rounds of QE. Dimon, Bush, and Obama are big buddies. Yet the answer is,......wait for it... More state. Of course...

ETA: you are just the latest leftist troll to come down the pike. Or a reincarnation of a previous statist. We have enough rightist statists around here to prop up big government. And at least they mean well (bless their hearts).

Alizard
05-13-2012, 20:48
WOW! I can't believe I found this article on a FOX news site........


http://www.foxnews.com/us/2012/05/12/jp-morgan-2b-loss-renews-calls-for-stricter-financial-oversight/

JP Morgan's $2B loss renews calls for stricter financial oversight


JPMorgan Chase faces intense criticism for claiming that a surprise $2 billion loss by one of its trading groups was the result of a sloppy but well-intentioned strategy to manage financial risk. More than three years after the financial industry almost collapsed, the colossal misfire was cited as proof that big banks still do not understand the threats posed by their own speculation. "It just shows they can't manage risk -- and if JPMorgan can't, no one can," Simon Johnson, the former chief economist for the International Monetary Fund, said Friday.////
But Dimon's (Morgan's CEO) contention that the $2 billion loss came from a hedging strategy that backfired, not an opportunistic bet with the bank's own money, faced doubt on Friday, if not outright ridicule. "This is not a hedge," said Sen. Carl Levin, D-Mich., chair of a subcommittee that investigated the crisis. He said the trades were instead a "major bet" on the direction of the economy, as published reports suggested.

JPMorgan's disclosure Thursday recharged a debate about how to ensure that banks are strong and competitive without allowing them to become so big and complex that they threaten the financial system when they falter.
///

Within minutes after trading began on Wall Street, JPMorgan stock had lost almost 10 percent, wiping out about $15 billion in market value. It closed down 9.3 percent.

JBnTX
05-13-2012, 20:54
....

ETA: you are just the latest leftist troll to come down the pike. Or a reincarnation of a previous statist. We have enough rightist statists around here to prop up big government. And at least they mean well (bless their hearts).


Is this now a Ron Paul, anarchist, GOP bashing, Mitt Romney hating forum where no opposing viewpoint is welcome?

Where those with opposing political viewpoints are called trolls, progressives, liberals, neocons, ignorant and stupid?

certifiedfunds
05-13-2012, 21:19
Is this now a Ron Paul, anarchist, GOP bashing, Mitt Romney hating forum where no opposing viewpoint is welcome?

Where those with opposing political viewpoints are called trolls, progressives, liberals, neocons, ignorant and stupid?

Well speak of the devil

certifiedfunds
05-13-2012, 21:20
It should come as little surprise that a statist can look at a very real problem and draw an entirely wrong conclusion. In a free market, JPM would have gone out of business in 2008. JPM has been a ward of the state since TARP, kept on life support thanks to ZIRP and rounds of QE. Dimon, Bush, and Obama are big buddies. Yet the answer is,......wait for it... More state. Of course...

ETA: you are just the latest leftist troll to come down the pike. Or a reincarnation of a previous statist. We have enough rightist statists around here to prop up big government. And at least they mean well (bless their hearts).

Yup. Join date this month. Its election time. Sniveling little neo-marxists come out of the woodwork.

Berto
05-13-2012, 21:24
No jobs = more college kiddies on the internet.

certifiedfunds
05-13-2012, 21:28
No jobs = more college kiddies on the internet.

But I thought Obama promised them jobs? What happened?

He blew like, what a couple trillion dollars to get them jobs. Shovel ready ones. You mean to tell me they didn't get the jobs?

I think their kids and grandkids are gonna be pissed that they have to pay all that money back with interest after their grandpappy didn't even get a shovel-ready job. I know I would be.

Berto
05-13-2012, 21:30
But I thought Obama promised them jobs? What happened?

He blew like, what a couple trillion dollars to get them jobs. Shovel ready ones. You mean to tell me they didn't get the jobs?

Evil conservatives won't hire them, too many disorderly/illegal tresspass convictions from Occupy squatting.

certifiedfunds
05-13-2012, 21:31
Evil conservatives won't hire them, too many disorderly/illegal tresspass convictions from Occupy squatting.

Those occupiers still crapping in the parks?

certifiedfunds
05-13-2012, 21:38
Q: How many occupiers does it take to change a light bulb?









A: Yeah right. Like an occupier would accept a light bulb changing job from a capitalist.

Berto
05-13-2012, 21:39
Those occupiers still crapping in the parks?

and internet forums.:supergrin:

barbedwiresmile
05-14-2012, 03:52
For those interested in this story beyond MSM drivel:

http://www.zerohedge.com/news/jpm-crashing-after-it-convenes-emergency-call-advise-significant-mark-market-losses

http://www.zerohedge.com/news/worlds-largest-prop-trading-desk-just-went-bust