Jamie Dimon Questions Bernanke On New Bank Rules, Complains About TOO MUCH Regulation, Becomes Wall Street Hero (VIDEO)
From the Q&A session after Bernanke's speech.
The Federal Reserve is your one and only best friend, secretly passing you trillions, and you decide to complain publicly about stronger capital requirements and regulators who might actually be doing the job, of well, regulating. If it's a free market he's after, then let's be clear: there's no Federal Reserve, no discount window borrowing, and no bailouts.
Guess what that means, Jamie? There's no JP Morgan.
Goodbye and good riddance.
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Details, quotes and a hero's welcome below.
From the WSJ:
In one of the very rare interesting moments of today’s Q&A session with Ben Bernanke in Atlanta, J.P. Morgan’s Jamie Dimon got a chance to ask Mr. Bernanke a question. Mr. Dimon took the opportunity to express his fear that too much bank regulation, and too much capital-holding, will hurt banks so much that it slows down the recovery.
“I have a great fear that somebody will write a book that the things we did in the crisis will slow down the recovery,” Mr. Dimon sniffled.
He ran through a list of the ways markets have changed since the crisis, saying “most of the bad actors are gone,” that exotic derivatives are gone, lending standards are higher, banks have more liquidity and capital, and boards and regulators are tougher.
Hey, Mr. Dimon seemed to suggest, enough is enough. And now on top of it all there are higher capital requirements and 300 new rules coming, and maybe it will all be too much for banks to take. Nice economy you’ve got there, he seemed to say. Shame if anything happened to it.
“Has anyone bothered to study the cumulative effect of these things, and do you have the fear, like I do, that when we look at it all, it will be the reason” why banks aren’t lending, he asked. “Is this holding us back at this point?”
“That list you gave me made me feel pretty good for a while,” Mr. Bernanke replied. “It sounded like we’re getting a lot done.”
Everybody had a good long laugh at that one.
Mr. Bernanke said he “can’t pretend” that anybody knows what the right balance of regulation and capital is going to be, but that they’re going to try to strike a balance that prevents future crises and keeps banks lending.
Update: Robert Reich has some issues with Mr. Dimon.
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And now reaction to this somewaht bizarre exchange:
- Jamie Dimon: Wall Street Hero or Nutty? - WSJ Analysis
- Here's What Jamie Dimon Is Really Worried About - John Carney
- Jamie Dimon Becomes Wall Street’s Hero Figure - John Carney
Snip from last link from Carney:
At one large midtown trading floor, there were cheers as Dimon spoke.
The clip of the video instantly made its way through thousands of email in-boxes inside the biggest financial companies.
One Wall Street executive described Dimon as “Our Pericles” in an email to associates. Pericles was an Athenian general who helped lead Athens into a golden age following the devastating Persian Wars.
Others are calling it Wall Street’s “Tea Party moment”—comparing it to the speech CNBC’s Rick Santelli gave that helped spark the Tea Party movement.
Jan 19, 2012 at 11:49 AM
Reader Comments (39)
http://online.wsj.com/article/SB10001424052702304392704576373923812206898.html?mod=WSJ_newsreel_markets
http://www.guardian.co.uk/business/feedarticle/9681226
a very good new piece on elizabeth warren...kinda...
http://blogs.wsj.com/marketbeat/2011/06/07/goldman-sees-end-to-treasury-rally/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fmarketbeat%2Ffeed+%28WSJ.com%3A+MarketBeat+Blog%29
http://online.wsj.com/article/SB10001424052702304392704576373572163437798.html?mod=WSJ_newsreel_markets
http://online.wsj.com/article/SB10001424052702304392704576373621456835348.html?mod=WSJ_newsreel_markets
http://www.marketwatch.com/story/fed-on-hold-until-sept-bullard-says-report-2011-06-08
New Jersey Proposal Would End Loophole for Elected Officials' Pension Benefits
http://online.wsj.com/article/SB10001424052702304432304576367853821558170.html?mod=googlenews_wsj
The Senate amendment to Dodd-Frank would have delayed rules that limit the amount banks can charge merchants for processing debit-card payments. The defeat of the provision, which had sparked a pitched lobbying battle involving the U.S.'s largest financial companies, retailers and consumer groups, was a major loss for banks and credit-card companies, which saw their stocks fall sharply after the vote, and could chill other campaigns to change provisions in the legislation.
http://online.wsj.com/article/SB10001424052702304392704576373831511169442.html
A Wall Street Journal review shows that some big-name investors, from Fidelity Investments to Carlyle Group, in recent years snapped up shares in Chinese companies that trade on Western exchanges.
http://online.wsj.com/article/SB10001424052702304778304576373991778095156.html?mod=WSJ_newsreel_business
The Federal Reserve, Treasury Department and many international policy makers agree that large financial institutions that pose risk to the global financial system should have bigger capital cushions. But policy makers are split over just how much capital is necessary.
http://online.wsj.com/article/SB10001424052702304778304576373903378066700.html?mod=WSJ_newsreel_business
The policies of the Obama administration have led to the weak condition of the American economy. Growth during the coming year will be subpar at best, leaving high or rising levels of unemployment and underemployment.
The drop in GDP growth to just 1.8% in the first quarter of 2011, from 3.1% in the final quarter of last year, understates the extent of the decline. Two-thirds of that 1.8% went into business inventories rather than sales to consumers or other final buyers. This means that final sales growth was at an annual rate of just 0.6% and the actual quarterly increase was just 0.15%—dangerously close to no rise at all. A sustained expansion cannot be built on inventory investment. It takes final sales to induce businesses to hire and to invest.
http://online.wsj.com/article/SB10001424052702303657404576363984173620692.html?mod=WSJ_hp_mostpop_read
Goodbye and good riddance.
Do these idiots think before they open their mouths? Rhetorical question.
http://news.xinhuanet.com/english2010/business/2011-06/09/c_13919422.htm
[snip]
Chairman of CME Group Inc. said Wednesday that the Chicago-based company was exploring a potential move of its corporate base, in response to a state tax hike on corporations, according to a report of Chicago Sun-times.
Terrence Duffy, chairman of CME Group Inc., on Wednesday also acknowledged investor frustration with the exchange company's share price and promised to consider other moves to improve shareholder value.
http://thehill.com/business-a-lobbying/165515-lobbyists-flock-to-omb-on-for-profit-schools
[snip]
Lobbyists, lawyers and senior executives for the for-profit school industry swarmed the Office of Management and Budget (OMB) days before the Obama administration announced new regulations to clamp down on the sector.
In a nine-day stretch last month, there were 16 meetings between administration officials and representatives of major for-profit schools that have lobbied heavily against the “gainful employment” rule, according to records kept by OMB’s Office of Information and Regulatory Affairs (OIRA).
Note: Was Dianne Feinsten a participant in any of these meetings?.
http://www.guardian.co.uk/world/2011/jun/08/us-universities-africa-land-grab
http://news.yahoo.com/s/nm/bs_nm/us_citigroup
[snip]
Citigroup Inc confirmed a computer breach at Citi Account Online, giving hackers access to the data of hundreds of thousands of bank card customers.
The bank recently discovered unauthorized access at Citi Account Online through routine monitoring, a spokesperson told Reuters in an email.
http://www.propublica.org/article/from-dodd-frank-to-dud
Banks Borrowed from U.S. Government and Loaned it Back at Higher Rates
By the second quarter of 2009, JPMorgan Chase had taken an average of $7.6 billion in outstanding Fed loans with an interest rate of 0.25% interest. At the same time, it held $34.6 billion in U.S. government securities with an average yield of 2.3%.
http://www.allgov.com/Where_is_the_Money_Going/ViewNews/Banks_Borrowed_from_US_Government_and_Loaned_it_Back_at_Higher_Rates_110428
JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
President Obama's Favorite Banker
http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html
Amen, bro!!! Nailed it...Dimon is nothing more than a parasite...
Commentary: And other great moments in revisionist history
http://www.marketwatch.com/story/the-midnight-ride-of-jamie-dimon-2011-06-09?link=mw_home_kiosk
READ THIS...commentary on dimon and bernanke...
Girls, there are some people out there that you should never kiss on the mouth. Wait awhile. See if they have a tendency to lie or steal. Listen to their dreams. Find out if they have beat their old girl friends or robbed their grandmothers at gunpoint. Have they recently fled to your state for 'sanctuary' when the public safety would be better served by their incarceration? Ask if they have a tattoo of Tony Blair or Ben Bernanke on their left cheek. Be careful. Don't get backed into a corner or reach out too far for that pie in the sky. Make friends with a rot-gut whiskey bottle before someone like Jamie Dimon. We guys love you and we want you to be happy.
the fascist regime,
they made you a moron
a potential H-bomb.
God save the Queen
she ain't no human being.
There is no future
in England's dreaming
There's NO WAY this shithead actually believes that. We don't need most of the "bad actors"--whatever those are--gone. The top 6--including JPM--will do.
"There's more off-balance sheet transparency," says Dickhead at 0:59. Huh? I guess that means re-valuing second mortgage liens from 100 cents to 95 cents on the dollar is more transparent than concrete. Now THAT's transparency, right, Jamie? Why don't we take a good thing even further? Like to 0 cents on the dollar. Whoa, hoss, that's a little too much transparency, as in JPM's very existence would prove to be a transparently fictitious joke.
"Fannie Mae and Freddie Mac are in the government hospital." 1:03.
Whatever that means, the Zimbabwean beard finds it greatly amusing. Less amusing of course is that the taxpayers are vastly overpaying for FNM and FRE's worst assets, paying $50 a pop for shit sandwiches. To Douchebag Dimon, this is progress.
"Regulators are much tougher in every way shape possible, I can assure you." This would be far more convincing if Jamie--or anyone else on Wall Street, for that matter--were sporting an orange jump suit. What in the HELL is Dimon dithering on about here?
"There's no more alt-A, there's no more subprime." 1:34. Once bitten, right, Jamie? Even an idiotic nozzle like yourself knows a losing bet after he's seen it 50,000,000 times and destroyed his own company. Now THAT's progress. Have the taxpayers cut that man a $20,000,000 check forthwith!
My gag reflex is flaring. I can't get through the whole thing. It's worse than Fatliners, the worst porno I ever saw.
Here is an announcement from Reuters.... They have an office very close to Larrys new employer.
Coming Monday: Debut Lawrence Summers column on the jobs crisis
At least five distinct regulatory failures led to the current crisis.
Regulatory Failure Number One: Failure to Manage the U.S. Trade Deficit. The housing bubble (as well as the surge in leveraged buyouts of publicly traded companies ("private equity")) was fueled by cheap credit -- low interest rates. One reason for the cheap credit was an influx of capital into the United States from China. China's capital surplus was the mirror image of the U.S. trade deficit -- U.S. corporations were sending lots of dollars to China in exchange for the cheap stuff sold to U.S. consumers.
Regulatory Failure Number Two: Failure to Intervene to Pop the Housing Bubble. Along with an influx of capital, Federal Reserve policy kept interest rates very low. There were good reasons for the Fed Policy, but that did not mean the Fed was helpless to prevent the housing bubble. As economists Dean Baker and Mark Weisbrot of the Center for Economic and Policy Research insisted at the time, Federal Reserve Chair Alan Greenspan simply by identifying the bubble -- and adjusting public perception of the future of the housing market -- could have prevented or at least contained the bubble. He declined, and even denied the existence of a bubble.
Regulatory Failure Number Three: Financial Deregulation and Unchecked Financial "Innovation." A key reason that mortgages were made available so widely and with such little review of recipients' qualifications was a shift in which institutions hold the mortgages. Traditionally, banks made mortgages and held them. In the new era, banks and non-bank mortgage lenders made loans, but then sold the loans to others. Investment banks packaged lots of mortgage loans into "Collateralized Debt Obligations" (CDOs) and then sold them on Wall Street, with a promise of a steady stream of revenue from interest payments. These operations were pretty much unregulated. Despite the supposed sophistication of the investors involved, no one took account of how shoddy the loans were or -- more fundamentally -- the certainty that huge numbers would go bad if and when the housing bubble popped.
Regulatory Failure Number Four: Private Regulatory Failure. It was the job of ratings agencies (like Standard and Poor's, and Moody's) to assess the CDOs and give investors guidance on how risky they were. They failed totally, likely in part because they wanted to maintain good relations with the investment banks issuing the CDOs.
Regulatory Failure Number Five: No Controls Over Predatory Lenders. The toxic stew of financial deregulation and the housing bubble created the circumstances in which aggressive lenders were nearly certain to abuse vulnerable borrowers. The terms of your loan don't matter, they effectively purred to borrowers, so long as the value of your house is going up. Lenders duped borrowers into conditions they could not possibly satisfy, making the current rash of foreclosures on subprime loans inevitable. Effective regulation of lending practices could have prevented the abusive loans, but none was to be found.
http://www.counterpunch.org/weissman01222008.html
cheyenne...jamie dimon lives in the land of revisionism...he's trying to change history...f^ck him and the Bentley he rode in on...
So, to belittle these thieving little punks, we do them a great service by not tar-and-feathering them first. The tar is quite hot, by the way. There exists a loyalty to a foreign authority in these criminals. And it sure smells like the english crown and The City of London to me. The U.N. is the old empire and the internet has allowed the entire world to see how some leaders have sold out their countries to the IMF.
Paulson, Jamie the future peon, Wolvowitz, Pearle, etc. have fed on the jugular of the workers of the world who just try to save a buck and send their kids to college and grow. Now the banker cheats ride the waves of destructive infiltration of the constitutional environment. Lets send in the marines. The Black this and that entities are comical in their simplicity but until America rejects this 'I am perfect and I am safe' attitude, things WILL continue to be broken apart. Look at who did 9-11, who intentionally blew out the DH oil well in the Gulf of Mexico,who sited Fukushima, designed and licensed Fukushima, who did the phony flu vaccine, who owns the majority of uranium mines in the world, who insisted(over-riding the generals)on nuking Hiroshima and Nagasaki, who engineered the ARM fraud, and on and on. Same sick, stupid little inbred group.
Chairman Mao tse Tung was a member of the Skull and Bones Society at Yale while he schooled there. He wrote "Political power comes from the end of a barrel of a gun". Nobody needs to start shooting anyone. Americans need to grow up before their country that they are neglecting, is destroyed. They will never have a better deal. The SEC is toast. The SCOTUS is too.
When we don’t pay close attention to the decisions made by our leaders, when we fail to educate ourselves about the major issues of the day, when we choose not to make our voices and opinions heard, that’s when democracy breaks down. That’s when power is abused. That’s when the most extreme voices in our society fill the void that we leave. That’s when powerful interests and their lobbyists are most able to buy access and influence in the corridors of power –- because none of us are there to speak up and stop them.
There has always been a tension between the desire to allow markets to function without interference and the absolute necessity of rules to prevent markets from falling out of kilter. But managing that tension, one that we’ve debated since the founding of this nation, is what has allowed our country to keep up with a changing world. For in taking up this debate, in figuring out how to apply well-worn principles with each new age, we ensure that we don’t tip too far one way or the other -- that our democracy remains as dynamic and our economy remains as dynamic as it has in the past. So, yes, this debate can be contentious. It can be heated. But in the end it serves only to make our country stronger. It has allowed us to adapt and to thrive.
@1:35: "There's more transparent accounting."
Interesting. And totally false. Mark-to-market accounting was suspended six months AFTER the financial crisis led to the passage of TARP. This enables Dimon's minions to program their computers to flat out LIE about their worthless assets--lies that continue to the present day. Lay off the drugs, Dimon, or at least share whatever it is that produces hallucinations this massive with the rest of us.
@1:39: "We've been through two stress tests... and passed with flying colors."
That's nothing, Jamie, you punk. Lehman passed THREE stress tests and... loaded the world's biggest diaper.
@2:00: "Has anyone bothered to study the cumulative effect of all these things?"
Why yes, I have studied your massively preposterous lies for 3.5 years. Conclusion: They beget even more absurd lies and bigger bonuses for worthless dumbasses like you and Lloyd.
@ 2:04: “And do you have a feel, like I do, that when we look back and look at them all, that they will be a reason that it took so long that our banks, our credit, our businesses, and most importantly job creation start going again? Is this holding us back at this point?”
The only thing holding us back here, Dimon you pompous dimwit, is your congenital inability to formulate a question that is even remotely comprehensible. I practiced law in federal courts for upwards of 20 years without ever hearing a question nearly that awful. That this ass clown is the CEO of anything bigger than a pizza stand is absolutely incredible.
http://www.youtube.com/watch?v=fzWDSwSGOk8
Now, are you sure you want less regulation, you panty waste?