Comments of the Week
Published May 18, 2012 2:05 PM
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Updated May 18, 2012 4:34 PM
1 Min Read
(Image: ThinkStock)
On JPMorgan Chase's Trading loss:
"Rogue trading is not something that happens TO banks. It is something banks ALLOW. Doesn't matter if it's intentional or unintentional. Sgt. Schultz defense is unacceptable." (Image: ThinkStock)
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On JPMorgan Chase's Trading loss:
"Having traded bonds for JP Morgan for 12 years, may I suggest that its most 'egregious mistake' was to assume, against financial theory, reams of empirical studies and the events of recent history, that its traders can consistently beat markets." (Image: Bloomberg News)
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On What JPM's Loss Means to Other Banks:
"I'm not so much concerned about the impact all this will have on JP Morgan Chase and the other so-called 'too-big-to-fail' institutions, but the impact this will have on the thousands of community banks in this country. Regulations, along with that other unsavory by-product, also roll downhill. Washington is ready to once again fire both barrels and they usually don't take real careful aim." (Image: ThinkStock)
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On Jamie Dimon's pay:
"Compensation committees are made up of executives who may someday face similar disasters. They would not want to be held accountable in such a case and they will not hold any other executive to the same standard." (Image: ThinkStock)
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On JPM's loss bolstering Volcker Rule support:
"Are there indications that the bank had such sound risk management practices in place that $2 billion would have been the upper limit of losses here, or were both the bank AND the system just lucky that the losses were not greater?" (Image: ThinkStock)
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On JPM's loss bolstering Volcker Rule support:
"When compared to what the expected real-term losses for society of the over 5 trillion dollars new U.S. debt accumulated the last 3 years could be... what does a $2-3bn loss signify? Besides, with respect to JPMorgan´s losses... who made the corresponding profits? If those profits were capitalized by a bank weaker than JPMorgan, then, as a system, we might even be better off" (Image: ThinkStock)
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On JPM's loss bolstering Volcker Rule support:
"It's astonishing that the big banks crashed the world economy and there's still no effective regulation of them. A re-crash is a real possibility unless and until common sense regulation by competent overseers is put back in place." (Image: ThinkStock)
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On defending Jamie Dimon:
"Dimon has been the confident face of a bank that has escaped the scrutiny and criticism his fellow systemically important banks have already faced. Forgive some of us from delighting in the fact that he now has to answer for many of the same weaknesses they have." (Image: Bloomberg News)
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On JPMorgan Chase's risk modeling:
"Another business case study in the making which will conclude, likely, that the fundamentals still apply: i.e., no new alchemy of risk modeling, analysis and regulation would have prevented this loss (and others like it still to come)." (Image: ThinkStock)
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On community banks and Dodd-Frank:
"It is disingenuous for trade groups representing the megabanks to suggest that sections of Dodd-Frank aimed at curbing high-risk behaviors and strengthening capital at systemically risky financial institutions should be overturned in the name of regulatory relief for community banks." (Image: ThinkStock)
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On community banks and Dodd-Frank:
"I couldn't agree more that the community banking industry has to step up and define the line between the top 19 and the rest of the banks with respect to regulation. If we don't most of us will soon be extinct." (Image: ThinkStock)
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On community banks and regulatory burdens:
"Legislation is the product of a mass of people representing specific interests waiting for an opportunity to strike. It is not a disciplined study of the matter. Dodd-Frank was an orgy of special interests and the product is sausage." (Image: ThinkStock)
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On Elizabeth Warren's call to reinstate Glass-Steagall:
"The genie is out of the bottle and there is no going back. They are to-big-to-fail and we will someday nationalize them (some or all of the big 5) just like what happened to Freddie and Fannie." (Image: Bloomberg News)
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On Elizabeth Warren's call to reinstate Glass-Steagall:
"I am sure Ms. Warren would also like to bring back the horse and carriage and the buggy whip!"
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On Elizabeth Warren's call to reinstate Glass-Steagall:
"Since Glass-Steagall's removal we have seen two bubbles driven by speculation, along with severe financial consequences, including the 2008 meltdown, when those bubbles burst. We have seen investment banks intentionally exploiting their customers, who they renamed ... 'counter parties.' We have experienced countless other abuses. What Ms. Warren proposes seems like common sense to me." (Image: Bloomberg News)
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On higher loan loss reserves:
"I think many bankers would agree to maintain larger losses, but isn't it ironic that if we trended in that direction, our independent auditors would not sign off on our financials?" (Image: ThinkStock)
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On breaking the boom-bust-regulate cycle:
"Banking is the most regulated industry on Earth, save nuclear power and, perhaps, medical and air travel. Regulation won't stop nuclear problems nor will it stop medical malpractice and air disasters. The Black Swan (red, yellow, and blue too) live on, and will always be with us." (Image: Bloomberg News)
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On comparing Volcker Rule proponents to Arnold Schwarzenegger in Predator:
"It's not often a quote from Arnold finds its way into a serious business piece. Well done, American Banker, well done." (Image: Bloomberg News)
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