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Banker of the Day

More angst at Davos:

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon was the only U.S. banking chief who showed up. He made a concession to the mood of this year’s event by accepting some blame for the collapse that has led to more than $1 trillion of writedowns. He deflected the rest at regulators.

“God knows, some really stupid things were done by American banks and by American investment banks,” Dimon said. “To policy makers, I say: ‘Where were they?’”

I know! I know!

The regulators were either:

1. Gone, because the Conservative movement you guys funded and believed in drowned their agency in a bathtub, or

2. Getting ready to walk through the revolving door and make the big bucks with you.

In other case, no regulation got done.

Jamie, Jamie, Jamie. Can't you understand? You're a fully paid of member the ruling class.* That's why you're at Davos! And, as Arthur Silber is fond of remarking, "It's called the ruling class because it rules. Of course, that doesn't mean you're intelligent, or competent, or even capable of surviving when the environment changes. But it does mean that you own the policy, and you own the economy. All the way.

Why don't we make the banks into regulated public utilities, so people can pay for credit the way they pay for the light bill?

NOTE * See David Broder.

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Submitted by Randall Kohn on

Dimon to regulator A thru Z:

You scoundrel!!!!!! Get your tongue out of my ass!!!!!!

Submitted by cg.eye on

Remember every time you call a regulator a corrupt, entrenched brownnoser, an angel sprains its wings....

Submitted by jawbone on

intriguing me for days and seems to fit under the topic of where is the regulation/what are the regulators doing, etc. The linky goodness is in Dave Johnson's post, so give him some clicky goodness during BAD (I have no idea of his sitemeter numbers).

Why Obama Will Fail
-- by Dave Johnson

Obama's economic team does not see themselves as working for the PEOPLE of the country, they see themselves as defenders of the Wall Street Elite. In the words of the new Treasury Secretary, "we’d like to do our best to preserve that system."

This is the justification for the new plan to just use government money to buy up all the bad loans made by the big Wall Street firms. They screwed up the economy. WE pay for it. They stay rich. We get ever poorer.

From the referenced post,

Consider this statement from Geithner, who said that Treasury is considering a “range of options” for its financial rescue plan, with the goal of preserving the private banking system. “We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system.”

They are trying to avoid "nationalizing" the banks. But what that means is that the government takes them over, reorganizes them, and then privatizes them again -- in the process wiping out the current shareholders and selling the good parts to new shareholders.

This is what we have always done with bad banks. This is what the FDIC does. This is what we did in the S&L crisis. But they don't want to do that this time.

More and more, those who wondered about why the Big Banker Boiz supported Obama very early on, with large contributions, seem to be getting their answers.

As the Senate continues to retool the Obama Stimulus bill, we see more of what Obama sees as priorities. He has assured Repubs that the bill will change and will include only those things which will actually work. (Where was he when the House bill was being crafted, btw???)

If he sees taxcuts as "working" as stimulus, we are in deep doodoo. If he sees propping up the Big Banster Boiz, again, deep doodoo.

BTW, on Democracy Now today, David Cay Johnston did say that Obama may be sorely mistaken if he thinks he can get more stiimulus bills out of Congress, that that if this one doesn't work the Repubs will dig in their heels and bray loudly that what Obama and Dems had tried has failed, so no more such money. Time for taxcuts, of course. He thinks Obama should go for a stimulus amount which is even bigger than anyone in his admin is talking about, but make it clear that if the stimulus is not needed it will not be spend. But it will be there. Oh, and taxcuts are not the kind of stimulus needed (iirc correctly)....

Damon's picture
Submitted by Damon on

“God knows, some really stupid things were done by American banks and by American investment banks,” Dimon said. “To policy makers, I say: ‘Where were they?’”

Are you serious? This is one of those moments you want to punch folks like him right in the nose. Before I got to his rhetorical questions, I was simply thinking "notice the agency" of his words. It's just a step above "mistakes were made" and he never specifically implicated his own place of employment. And, that all would have been bad enough. I simply can't believe he had the gall to then pass all of the responsibility to the government, but he did.

And, the GOP's House of Cards continues to fall. They love to preach "personal responsibility" that is, unless its about themselves.