Arab Today, arab today jpmorgan debacle
Last Updated : GMT 19:50:02
Arab Today, arab today
Arab Today, arab today

JPMorgan debacle

Arab Today, arab today

Arab Today, arab today JPMorgan debacle

College Park - UPI

U.S. President Barack Obama is shameless to cite JPMorgan Chase\'s $3 billion trading loss as evidence banks need more regulation. More accurately, the debacle raises serious questions about incompetence and corruption among federal regulators and inside the Obama White House. JPMorgan\'s Chief Investment Office got in trouble trying to undo positions: First the CIO bet bearish on corporate bonds, through derivatives on an index of those securities, and then tried to bet bullish as it read market sentiment shifting. Both can be legitimate hedges but taken together are too complex to manage. Stupid perhaps but I doubt reasonable implementation of the Volcker Rule prohibiting trading with banks\' funds would keep big financial houses from taking such positions. The Federal Reserve and Comptroller of the Currency have 110 regulators imbedded in JPMorgan -- not just visiting occasionally to check the books but domiciled inside. Yet, the CIO, which was responsible for the ill-fated trades and manages nearly $400 billion, had not a single official inside its unit. Senior bank executives convinced federal officials the CIO was merely hedging, managing cash and taking no significant risks, and naively, regulators believed the bank or were bullied by their political bosses to turn a blind eye. It turns out the unit was also buying stakes in distressed firms, including the publisher of Ebony, which is headed by former Obama White House official and Democratic Party operative Desiree Rogers. Investing in distressed firms is work for private equity and hedge funds, not FDIC-insured banks. It is analog to Grandma cashing in certificates of deposit to play slots in Las Vegas, and has nothing to do with the Volcker Rule. More importantly, those bets raise questions about whether senior bank officials lied to regulators, political influence altering JPMorgan investment choices and the self interest influencing regulation inside the Oval Office. Senior JPMorgan officials can and do go over the heads of resident regulators to their politically appointed bosses in Washington and the Fed to deny on-site regulators\' requests for information and sometimes succeed. And, in addition to revelations about Desiree Rogers, Barack and Michelle Obama have $500,000-$1 million invested in a JPMorgan \"private client\" account. Merely writing ever more complex regulations and stationing bureaucrats inside businesses -- sort of like boarding an IRS agent in your home for 30 days before April 15 -- won\'t fix these problems. Taxpayers would learn how to distract the Treasury gum-shoe while they itemized \"gray area\" deductions and no doubt JPMorgan Chief Executive Officer Jamie Dimon is even more imaginative. Obama is corporatist in the French and Latin American tradition. He wants a market economy where the public interest is safeguarded and government purposes are served through heavy supervision of the daily operations of private businesses. But the lessons of Europe and Latin America are that all this breeds is corruption and slow growth. Dimon is a Democrat and employees at JPMorgan and other behemoth Wall Street Institutions have plowed huge sums into Democratic campaigns. Senior officials at JPMorgan assured regulators the CIO was making no risky bets when it was running a casino. Dodd-Frank was supposed to fix the problem by hiring more regulators but that didn\'t keep JPMorgan\'s CIO from betting on distressed firms and it has encouraged consolidation of banks into larger and larger institutions. The upshot -- small business in Iowa can\'t get loans because Wall Street is distant and doesn\'t appreciate their value, and bigger banks can easily snooker regulators. When they can\'t, they can fall back on the political influence campaign contributions appear to buy.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today jpmorgan debacle Arab Today, arab today jpmorgan debacle

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today jpmorgan debacle Arab Today, arab today jpmorgan debacle

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday