HOME



Digby's Hullabaloo
2801 Ocean Park Blvd.
Box 157
Santa Monica, Ca 90405



Facebook: Digby Parton

Twitter:
@digby56
@Gaius_Publius
@BloggersRUs (Tom Sullivan)
@spockosbrain



emails:
Digby:
thedigbyblog at gmail
Dennis:
satniteflix at gmail
Gaius:
publius.gaius at gmail
Tom:
tpostsully at gmail
Spocko:
Spockosbrain at gmail
tristero:
Richardein at me.com








Infomania

Salon
Buzzflash
Mother Jones
Raw Story
Huffington Post
Slate
Crooks and Liars
American Prospect
New Republic


Denofcinema.com: Saturday Night at the Movies by Dennis Hartley review archive

January 2003 February 2003 March 2003 April 2003 May 2003 June 2003 July 2003 August 2003 September 2003 October 2003 November 2003 December 2003 January 2004 February 2004 March 2004 April 2004 May 2004 June 2004 July 2004 August 2004 September 2004 October 2004 November 2004 December 2004 January 2005 February 2005 March 2005 April 2005 May 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019


 

This page is powered by Blogger. Isn't yours?

Hullabaloo


Thursday, May 10, 2012

 
Dimon in the rough

by digby

Felix Salmon explains what happened with JP Morgan today and it's frankly kind of scary. Nobody seems to think this has indications for the greater financial system at the moment but then we've heard that before. In any case, he ends with this:

[T]his loss only goes to show how weak the Volcker Rule is: Dimon is adamant, and probably correct, in saying that Iksil’s bets were Volcker-compliant, despite the fact that they clearly violate the spirit of the rule. Now that we’ve entered election season, Congress isn’t going to step in to tighten things up — but maybe the SEC will pay more attention to Occupy’s letter, now. JP Morgan more or less invented risk management. If they can’t do it, no bank can. And no sensible regulator can ever trust the banks to self-regulate.


The Wall Street Journal live-blogged the call today, which featured this little exchange right out of the gate:

Dimon is done speaking, will take a few questions.

2:09 pmby David BenoitAdd a Comment
Dimon: "Obviously we should have acted sooner."

2:10 pm$2 billion trade came in 2Qby Paul VignaAdd a Comment
Question: When did you catch it? When did you update regulators?

Dimon says there were "small" losses in the first quarter, and the $2 billion loss came in second quarter. "Obviously, that got our attention."

2:11 pmby David BenoitAdd a Comment
Dimon personally apologizes for meetings he had this week with analysts where he wasn't allowed to say anything.

2:16 pmAdd a Comment
Dimon says that CIO has done a great job for a long while, but obviously this was a big mistake.

2:17 pmby David BenoitAdd a Comment
Dimon officially apologizes to Guy Moszkowski of BofA. "I feel terrible" about meeting. Apparently the two had a chat this week.


Gosh that sounded familiar. Oh right:

JPMorgan this week finalised a $US153.6 million ($145m) settlement with the SEC over claims it misled investors about collateralised debt obligations created before the global crisis.

Dimon admits banks -- including his -- made mistakes.

Ever the salesman, though, he is confident JPMorgan has righted the wrongs and says it is disappointing that Wall Street's reputation is so tarnished.

"It's so unfair to talk about Wall Street and ethics," he says.

"The people that we deal with a lot on Wall Street are some of the most ethical people I know.

"There are some bad apples on Wall Street. I think the military is the most extraordinary organisation but there are some bad apples in the military.

"I think universities are unbelievable but there are some bad apples in universities. I think reporters for most part are smart and hard-working people, but there are some bad apples as reporters."


Yes, that was so unfair.

I don't know if any of that talk about misleading people this week is going to turn out to be relevant to be honest. But you would think that Dimon, of all people, would have been careful about such things. On the other hand, what's the difference? They apparently didn't violate the Volcker Rule even with 2 billion in losses and the SEC probably won't do much.

JP Morgan Chase was known for being the best in the business at risk management --- rare entity that didn't get caught up in the speculative fever that characterized the business before the crash. And as a result Dimon took the lead in making lugubrious pleas to leave the poor banks aloone, insisting that regulations like Dodd-Frank were destroying the very foundation of the financial system which was well able to regulate itself. Well, how'd that work out?

Let's all pray that nobody's bonus is affected by all this. I couldn't take the weeping.


.