June 18, 2012 |
WASHINGTON - As JPMorgan Chase & Co. Chief Executive Jamie Dimon prepares for another day on the congressional hot seat this week, the U.S. Chamber of Commerce warned lawmakers and regulators not to overreact to the bank's huge trading loss. "Hiding money in a mattress isn't a strategy for a growing, prosperous, economy, but that seems to be the road some want us to go down," Thomas Quaadman, vice president of the U.S. Chamber's Center for Capital Markets Competitiveness, wrote on the business group's blog Monday.
June 13, 2012 |
Jamie Dimon again proved himself Wall Street's able frontman in Washington, but his testimony on Capitol Hill may not head off tougher banking regulations in the wake of JPMorgan Chase & Co.'s risky trading losses. Dimon, JPMorgan's chairman and chief executive, appeared at ease with lawmakers as he fielded questions -- some aggressive, but most deferential -- at a Senate Banking Committee hearing Wednesday about his bank's trading losses of more than $2 billion. Although the hearing focused on how JPMorgan's embarrassing loss occurred, the two-hour session veered into larger debates over financial regulations -- putting Dimon in a familiar role of Wall Street's savvy, shoot-from-the-hip spokesman.
May 30, 2012 |
"Bring back Glass-Steagall!" That's the cry you hear most often for restoring regulatory stringency to our misbehaving financial sector. The 1933 law, which barred commercial banks from underwriting or investing in stocks - in effect, from owning investment banks - was repealed in 1999, and reinstating it is a good proposal for several reasons. But what the 2008 financial crash and misadventures such as JPMorgan Chase's multibillion-dollar derivatives loss tell us is that reinstatement of the old law isn't enough.
May 24, 2012 |
In case you were wondering, big banks are doing really, really well, thank you very much. U.S. bank earnings rose in the first quarter to the highest level in nearly five years. Meanwhile, the number of troubled banks fell for the fourth straight quarter. This is particularly noteworthy because our friends in the banking industry raised a considerable ruckus over a slew of new regulations. Despite driving the global economy to the brink of collapse a few years ago, industry representatives argued that increased oversight would mess up their business and hurt customers.
May 11, 2012 |
It's a measure of how successful Wall Street has been at eviscerating the so-called Volcker Rule that in its current guise it would not have prevented JPMorgan Chase from making the derivatives trades that produced the stunning $2-billion trading loss disclosed this week. Even in its weakened loophole-ridden state, the rule, which prohibits banks from making risky trades for their own accounts, has been raked with gunfire from Jamie Dimon, the JPMorgan chairman who presided over that loss.
April 13, 2012 |
Wells Fargo & Co. and JPMorgan Chase & Co. kicked off the bank earnings season by reporting higher than expected profits Friday, with strong mortgage results helping to boost revenue higher than analysts had anticipated at the two largest home lenders. Fourth-quarter profit rose 13% at Wells Fargo while JPMorgan Chase's net income fell by 3% -- a smaller decline than analysts had expected from record earnings in the fourth quarter of 2011. The results bode well for the banking industry, according to Keefe, Bruyette & Woods analyst Fred Cannon, who said in a note to investors that JPMorgan Chase also exceeded expectations in its huge investment banking and trading businesses.