Shouldn’t JPMorgan Chase CEO Jamie Dimon face some repercussions for the $2 billion blunder that occurred in the course of six weeks under his watch? Once again, Wall Street is on the wrong side of reason and not working for the people on Main Street. They haven’t learned from the financial nightmare that engulfed this country and from which we still can’t gain a strong foothold to pull ourselves out. Well, Jamie Dimon should step down as director at the Federal Reserve Bank of New York, that’s the first order of business. We are seeing yet another incident in which Wall Street isn’t being held accountable for its actions because the lobbyists running up and down the halls of the Capitol are running the show.
What makes this even more despicable is the fact that these errant trades could have been prevented had the Volcker Rule provision been in place in the Dodd-Frank financial review law. Surprise, surprise, Jamie Dimon was a strong critic of that piece of legislation. He appeared Sunday on NBC’s “Meet the Press,” and acknowledged that JPMorgan Chase’s “misstep (if you can call it that) would give lawmakers new ammunition to seek more stringent controls on the nation’s banking practices. He said, “we know were sloppy. We know we were stupid. We know there was bad judgment. This is a very unfortunate and inopportune time to have this kind of mistake.” Um, you think Jamie? The Volcker Rule is intended to prevent banks from making high-risk trades for their own profit.
Dimon dismisses the misstep as a mere $2 billion, considering the company made $19 billion in profit last year. Let’s not be oblivious to the fact that the $2 billion loss could snowball and could potentially have been earned through crime. The bigger issue for me is that this screams out for stricter regulation or else taxpayers like you and I may be forced to step in again and rescue the company because of the “too big to fail” label. How many more massive errors will be allowed until stricter oversight is implemented or will lawmakers continue to jump in bed with lobbyists?
Ina Drew is the first executive to resign as a result of this scandal, but shouldn’t there be more far-reaching fallout at JPMorgan Chase, including Jamie Dimon stepping down as director at the Federal Reserve Bank of New York? Are you going to send the fox to guard the hen house? Chase has paid out billions to settle a laundry list of charges over the years, including perjury and forgery (foreclosure fraud and abuse), investor fraud and the sale of unregistered securities — all under Jamie Dimon’s watch. Either he is the real Teflon Don of the banking world or he has used his position to insulate himself from accountability, yet he is allowed to sit on the board of directors of the Federal Reserve Bank of New York. You see, Jamie Dimon is allowed to sit at the table with people whose responsibilities include how much of other people’s money gets earmarked for rescuing “too-big-to-fail” banks like his own. In other words, “we the people” will pay for a new hen house for Jamie Dimon when the one he has now is gobbled up by risky business transactions. He has screamed against all forms of regulation against Wall Street banks at every step of the way, even using extreme language to characterize the criticisms leveled against banks, such as saying bigotry is no different from racism. The time has come for strict oversight on Wall Street on all fronts. JPMorgan Chase poses a threat to markets, economies and people globally, not just in the United States of America. Time to stand down Mr. Dimon. We can no longer allow you and your Wall Street buddies to do as you please.
UPDATE#1 (05/14/12): President Obama says JPMorgan Chase is one of the best run banks around. Um, is he seeking donations from Wall Street? Obama made the comments during an appearance of ABC’s “The View,” adding “Jamie Dimon, is one of the smartest bankers we got and they still lost $2 billion and counting. We don’t know all the details. It’s going to be investigated, but this is why we passed Wall Street reform.” Obviously they aren’t as well run as they claim to be.