Thursday, January 24, 2013
Davos: How Jamie Dimon and JPMorgan Chase Endanger the Public Safety
This article deals with JP Morgan Chase and the new regulations is banks. My dad works at Chase so I remember the big loss they had a while ago with the poor investment made in London. Chase got a very bad rep from this and this talks about the rising regulations from the government. Jamie Dimon is a very well respected business man especially in the banking world. He talks about how the regulators are doing too much regulation and it is restricting the bank. With the facts he presents it shows that Chase is still doing well. I believe that he has enough experience to where he can bounce back from even major issues. If the regulators do too much, they will restrict the banks and hold them back from doing their normal stuff.
Subscribe to:
Post Comments (Atom)
Jamie Dimon is indeed a very well respected business man. In my opinion, the London whale loss was made out to be much worse than it truly was. Yes, they lost about 5 billion if my memory serves me right, but some employees simply displayed poor judgement in some hedge investments. More importantly, the company had record results in 2012, mostly thanks to Dimon's remarkable navigation through such tumultuous times. Additionally, Dimon took a 50% pay cut for 2013, mostly as punishment for the whale loss. In terms of regulation from DODD frank, it does restrict the banks from doing some of "their normal stuff", but it also serves as an investment incentive to the general public. It helps prevent big banks from making dangerous investments, ultimately encouraging more trust between consumers and banks.
ReplyDeleteYes I agree that The London loss was not as big as people make it out to be at times. Looking at Chase's stock and how much it has grown lately I would say that they have recovered pretty well and the regulators should look at that and trust in how well Chase's recoveries have been and see that Dimon handled everything very well and is continuing to have success in the banking world.
ReplyDelete