Here We Go Again!
 

JP Morgan loses at least 2 billion dollars trading credit default swaps.

“There were many errors, sloppiness and bad judgment,”Dimon said as the company’s stock fell in extended trading.“These were grievous mistakes, they were self-inflicted.”

You think!
This coming from the goof that is leading the charge against the Volcker Rule which is scheduled to take effect later this year. It is past the time when we break up the big banks. If we don't some rogue traders at these banks will once again send the country into a deep recession or worse, a depression. The way the banking system is set up in today's world, it is like dominoes, if one of the big fails, most of the other banks have fail too.

Exactly what Glen Becks been saying for years.

What's worse? $2 billion in "bad trades" or $787 billion pissed away on a failed stimulus? I'm sure all the usual blowhard Senate hacks will drag JPM execs in for a prime time televised grilling while those involved in the stimulus get their usual pass and those involved in Fast and Furious continue to stonewall investigators. Our elected officials need to get their priorities straight.

Why was Glass-Steagel repealed in 1999? If it isn't repealed, there would've never been a need to bail out the commercial banks. You could've let them fail without any risk to the system. Everyone was on board for the repeal: Clinton, Congress, and especially Jamie Dimon, who was still at Citigroup. Citi was the driving force behind it.

:ThmbUp:

If it weren't for irresponsible acts by the banks like this one , the 787 billion stimulus wouldn't have been necessary. Nether would have been the massive bank and AIG bailouts. JPMC execs should not be talking to congress, they should be talking to a grand jury! These people whether they like it or not are responsible for a lot more than their shareholders's money. What they do effects the entire banking system and the US economy.

They thought they could trust banks to the do the right thing. We now know that we can't.
"Fool me one, shame on you.
Fool me twice, shame on me"

Like horse racing, the stock market is gambling. Had this "bad bet" made money, no one would care. Besides it was done in the UK, not here. The guy needs to be fired and blacklisted from ever working at another investment bank. But the bottom line is that nothing illegal was done. Stupidity is still legal and it is still thriving here in America judging from how many people still support this idiot racist president.

That Damn Bush.
Oh wait, this happened on Obama's watch!

I thought he had everything under control?
Wazzup wit dat?

no one would mind if the taxpayers didn't have to use their money to bail out the banks when they lose on their schemes to make money.

The banks should be allowed to go out of business, and ALL their account receivables be zeroed out.

Banks should die for their countries, not countries for their banks.

If it involves just one bank, that is great idea. The problem is that the banking system today is so interconnected that if one big ones goes under it going to take a lot of other banks with it.
If you have ever been around a bank failure, you know it can be devastating to the community. Generally when a small bank fails, a larger ones comes in and takes over. The FDIC covers any short fall for that bank. If there is no larger bank willing to takeover, the depositors get a check from the FDIC. If you have a business loan with the bank it gets called. I saw this happen close up in a small town. Business closed because there was nobody to lend money for operating expenses. People lost their jobs. Farmers lost their farms.
Banks should be banks and not hedge funds/banks. Hedge funds/banks can get easily get into trouble over gambling and not not have enough money to cover their banking deposits. The banking business model is proven over many years and unless there is major theft of the bank's money, it is virtually impossible to go broke. It is a boring profitable business. No big years with huge profits and no huge bonuses for its execs. Hedge funds on the hand are an exciting boom or bust business. Huge profits and big bonuses in a good year and bankruptcy court in a bad one. The businesses do not mix well. Banks and all the services they offer are vital to the economy. Hedge Funds are not. They should however be allowed to exist, but not tied to a bank. The banks are to valuable to the community to risk having a lot them fail because the "markets" had a bad year.

Who said we have to? Rewarding failure isn't in my playbook or most business people's either. Only a corrupt government would come up with that idea.

Boxcar

I agree with Tom on this one, if you allowed the banks to fail when this first hit, no moneys would have went to foreign banks from the US taxpayer's pockets. Why should we insure liberal skum from other country's? Let the Bilderburg Group and Europe take the hit, so what if England burns!