A Little Deregulation Will Put Out That Fire!
By As Jamie Dimon says, we need less regulation of banks who take taxpayer-backed money to the casino:
And then, last night, JPMorgan Chase announced it had lost $2 billion on some very big, very dumb hedges. For proponents of stricter financial regulation, Dimon’s giant loss is a huge gift. The final version of the Volcker rule is scheduled to be released in the coming months. Dimon swears that these trades would have been compliant with the previous drafts of the Volcker rule. That will give regulators a strong incentive to make sure future trades like these aren’t.
Clearly, the problem is one of executive compensation. If JP Morgan would just double the CEO’s salary, I’m sure they could get somebody competent. Meritocracy can hardly be expected to function at a measly $21 million a year.