If you ever doubted there was a need for strict, new government regulations on Wall Street, don’t worry about it. Jamie Dimon just proved the case.
Ever since they almost destroyed the American economy, Dimon, the loud-mouthed CEO of J. P. Morgan – who made only $12 million last year – has attacked as “anti-business” anybody who dared criticize the big banks and opposed any new rules for Wall Street. He sent a whole army of lobbyists to Washington to tell Congress:
We don’t need any Dodd-Frank. There’s no need to do anything after the 2008 financial collapse. We’ll police ourselves. We promise: we’ll never play those funny-money games again.
Then, guess what? Just last Thursday, Dimon had to admit J.P. Morgan was, indeed, playing the same games again – using bank funds to hedge bets on the market – and lost $2 billion.
There’s no government bail-out this time, but the J. P. Morgan debacle proves that we can’t trust the big banks to do the right thing and handle our money responsibly. Government must step in with strong, but fair, new rules.
And Jamie Dimon should shut up – and resign.
That’s my parting shot for today.