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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsKrugman: Romney’s JP Morgan Stance 'Completely Clueless'
Sometimes its hard to explain why we need strong financial regulation especially in an era saturated with pro-business, pro-market propaganda. So we should always be grateful when someone makes the case for regulation more compelling and easier to understand. And this week, that means offering a special shout-out to two men: Jamie Dimon and Mitt Romney.
Ill come back shortly to the troubles at JPMorgan Chase, the bank Mr. Dimon runs. First, however, let me talk about Mr. Romney, whose remarks about those troubles were so off-point that they constitute a teachable moment.
Heres what the presumptive Republican presidential nominee said about JPMorgans $2 billion loss (which may actually have been $3 billion, or $5 billion, or more, but whos counting?): This was a loss to shareholders and owners of JPMorgan and thats the way America works. Some people experienced a loss in this case because of a bad decision. By the way, there was someone who made a gain.
Whats wrong with this statement? Well, suppose that someone say, Jimmy Stewart in the movie Its a Wonderful Life runs a bank that takes in deposits and invests the money in various ways. And suppose that one of those investments is a risky bet on some complex financial instrument, with Mr. Potter, the evil plutocrat, on the other side.
http://www.nytimes.com/2012/05/21/opinion/dimons-deja-vu-debacle.html
JoePhilly
(27,787 posts)Scurrilous
(38,687 posts)bluestate10
(10,942 posts)President Obama need to stick that stance to Romney. JP Morgan Chase has just started to bleed. The true loss is likely to come in at $5-7 billion. JPM has claimed just $2 billion of that loss. The true JP Morgan loss is likely to come out in a slow bleed, making the case for regulation. By late summer, Romney will look like an incompent fool and his supposed business credentials will be in deep question.
Brooklyn Dame
(169 posts)...because anyone with open eyes can see what happens when the system isn't regulated.
http://borderlessnewsandviews.com/2012/05/duh-its-financial-reform-time-stupid/