Last time I looked JP Morgan Chase was a corporation, not a government entity, one eating $25 million a day, like the Post Office. A private corporation that made $20 billion in 2011, and $5.4 billion the first quarter of this year. So what if they lost $2 billion in bad trades? Why does that require more regulation?
Let me tell you something that I believe is absolutely true. If something is going on in a business that needs to be fixed, the business will find that problem long before the government will. Regardless of regulations. Let’s remind ourselves the federal government still hasn’t found the money that the former senator, and governor, and good friend of Obama, Jon Corzine stole from his investors, an amount that is almost as much as JP Morgan lost in bad trades.
No one ever mentions how much of the $20 billion JP made in 2011 came from good trades.
We have become a “run to” society. Anything that happens, we need to “run to” someone. No one can resolve any problems on their own today. They need someone else to fix everything.
With all the heat Jamie Dimon, CEO of JP, is taking for the $2 billion loss, rest assured, he will make sure it won’t happen again on his watch. He’s already fired at least three people.
Here’s what you get with more government regulation. Just what you got with Dodd/Frank. A whole bunch of shiny new bureaucrats, with better benefits than you have ,and no accountability, nor any risk of termination, creating a great new bunch of forms that will require the banks to hire a big bunch of administrative people who won’t generate one dollar in profit.
But, back to the original question. When a corporations loses money they can afford to lose, why is this big news? Why is this something that requires all kinds of media attention and government hearings and public whippings? If you own Morgan stock, decide whether this is so bad you need to sell. If you don’t, butt out. It’s none of your business.
