Jamie Dimon is starting to gray a bit. The classic “wunderkind of Wall Street” has replaced an literal army of “Failed State Investment Banks” that have gone the way of the “Dough Dough” after the historic great crash of 2007! Today it was reported that J P Morgan Chase has lost a quick $2 Billion dollars during the last six weeks, in what they euphemistically call: “Synthetic Investment Vehicles”. Dimon says this situation may soon be exacerbated by further bad investment ideas that J.P. Morgan Chase has made. Sounds familiar doesn’t it? Hedge Funds, Derivatives, Credit Default Swaps, Specialty Investment Vehicles……oh my that list just goes on and on doesn’t it. Countries like Iceland, Ireland, Greece, Italy, Spain, Portugal and bunches more to be named at a later date have more than a passing acquaintance with these “Wall Street Miracles”. EU and World Bank Commissioner and Christine Lagard has warned: “This could happen again…..soon”
Bernie Madoff is serving his 70 years in prison and rightfully so. Bernie Ebbers at World Com, Jeff Skillings at Enron……plus a huge list of lesser knowns all are serving time …. and rightfully so. When the Bush-Obama Administrations had to bail out Fannie and Freddy, AIG, General Motors and more, just to keep the economic world upright…there was a warning label included: “Renew and fix the Glass-Steagall Act that was removed under Bill Clinton. Restrict Investment Banks from dawdling and playing in the speculative high risk Derivatives and Hedge Fund markets that utilize Synthetic Investment Vehicles.
Well, what happened? The same bankers crossed off their Trillions in losses and started over. “Hey, here is a fresh piece of paper!” “Look how clean it looks?” Did the Congress Act, did the Congress go after the systemic abuses that are still rampant in the system? No, they went after minor issues which had nothing at all to do with the Regulation of Banking. It was business as usual and they have even tried to keep the Real Estate bubble inflated along the way. Especially at the higher levels of Residential and Commercial properties. The tiny write offs and write downs to people facing foreclosures are just a bunch of frosting on a cake… standing out in the rain.
The situation is bad. If J P Morgan Chase has to come clean because they are facing even more losses in the coming weeks – you know the situation has to require some “corrective immediate action”. In the old days, they would have just closed the bank to all business until they could get themselves back to a clean and fully solvent state of affairs. Where are those Bank Regulators? Is this strictly an SEC responsibility? Where is the Congressional oversight? What is the Treasury Secretary doing on this? Come on folks, Paul Revere has just made his ride….and people are standing around wondering where to get their next laite and croissant. Will the Fed have to bail out J P Morgan Chase? Go ahead…..we have bailed everyone else out. Hey, you can’t find some out of work bus boys or liquor store clerks that can do this type of global banking? You need folks that understand the system and can unwind these very complex Synthetic Investment Vehicles over several years time….maybe up until they retire with giant bonuses, mega annual salaries and huge golden parachutes that include humongous stock options offered at ridiculously price stock lows.
Please put these folks in jail. Then we will at least know where they are. They are still “juicing the system” and they are still stealing from the public hand over fist. Short Selling is when you think the price of something is going to go down….Long Selling means you are going to keep the stock or investment for a longer period of time. They need to close the Short Sell market completely…until further notice. The abuses seemingly continue unabated with no relief in sight. The double dealing has become part of the culture. Selling SIV’s to any customer you can find and turn around and sell short while you sell every one of those issues …in lightning speed by computer. Hey, who would know? Guess J P Morgan Chase did a little too much Short Selling …eh?
How about an emergency session of Congress to deal solely with the Banking Issue. Weren’t they supposed to do that back in 2007? Shouldn’t the SEC step in now….before it becomes history and offer some suggested emergency regulations?
Emergency regulations? Would you care to tell us which political party would be absolutely, unequivocally resistant to that?
*Certainly Anon; The one “without” the two brain cells to rub together!
Still card-carrying members? (of the Elephant-in-the-room Party of course)
Paging Mr Ben Bernanke. Cleanup on aisle 5.
*Have to admit it…..Jamie Dimond was very impressive on Meet the Press. He came right out and said “the system is still flawed”. Love it. Hopefully Levin and Darrell Issa can get something going to put a stick in the rear of the SEC enforcement group.
Ron & Anna, that was excellent reporting. However, there was so much complicated information given I found myself at times looking cross-eyed. I completely agree there should be alot more of these execs going to prison, but you and I know it ain’t gonna happen anytime soon because our government officials and corporate bigwigs/WallStreet are in bed with each other. They don’t even try to hide it anymore. I think many of our elected officials could use a lengthy stay in one of those nice private prisons they helped build. In my opinion both parties (Repubs and Dems) are guilty for not making laws to stop these reckless investments with OUR money. One group acts like bullies and the other like pussies. What a nice show they put on for us. They both could stop this if they wanted, but why should they when they get such nice campaign contributuions that keep them in the lifestyle they have grown accustomed to, and they do it on a part time basis! How many days did they work so far this year? How about last year? And what great perks they give themselves. Oh, did I mention that all those laws they pass for you and me, they are exempt from? How about that “insider” trading scandal that was news not to long ago and our dear friend Nancy Pelosi gave that death stare to the reporter who had the nerve to ask her why she paticipated in that behavior.
If you are waiting around for someone in Washington to do the right thing and stop this insanity you are living in a fantasy world. It is up to US, the citizens to withdraw our monies from these banks, cut up our credit cards, and stop adding our hard earned dollars to those 401ks. WE have the power to starve these corporations. WE are the ones we are waiting for!
My grandparents never trusted banks and kept their money under their mattress and hidden in interesting places all over their house. They didn’t need a 401k to get by in their old age. They did not keep their money in a savings account because they refused to pay taxes so Uncle Sam could waste it on frivilous things or wage wars so their war contractor buddies could get rich. Whatever small interest they would have gained would have been taken away by Uncle Sam anyway. For those of you who obediently add every month to your 401ks thinking you will have a nice nest egg when you retire, will be shocked how much money will be taken off the top by your friendly investment brokers for fees, and don’t forget about the taxes, that is if you haven’t lost half your money because of their risky investments with YOUR money.
*Mike Wallace: They say that the Congress has a 20% approval rating. The retail market for the Stock Market is verging on the same percentage. No one trusts those that are running the big show on Wall Street. In 1998, when Clinton signed the end of Glass-Steagal – it had recieved a 88% vote of both parties to kill it. Paid off in total by the usual Institutional Investors on Wall Street. We need to reinstate Glass-Steagal and then see what happens. They would all have a cow…..if that should occur!