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JP Morgan’s $2 Billion ‘Oops’: What Else Is Out There?

JP Morgan’s $2 Billion ‘Oops’: What Else Is Out There?

Ignore for a minute the fact that Jamie Dimon, CEO of mega-bank JP Morgan is one of the chief architects of the campaigns to water down Wall Street reform, and ignore even for another second his ties to the New York Fed, and ignore for one final second the fact that his defense of his bank’s $2 billion trading blunder rests solely on the fact that they gambled too big with house money in trades wouldn’t have been stopped by the Volcker Rule anyways and what we have is the inescapable conclusion that risk-taking to the level of blind and ignorant stupidity is inherent in the investment banking world.

Or, we could use Dimon’s own description. “We know we were sloppy. We know we were stupid. We know there was bad judgment. We don’t know if any of that is true yet. And of course regulators should look at something like this. That’s their job so we are totally open to regulators and they will come to their own conclusions,” Dimon said. “We took far too much risk, the strategy that we had was barely vetted, it was badly monitored. It should never have happened.”

So far it looks like one of the highest-ranking women on Wall Street is taking the fall as the bank tries to deal with this story and quick. Ina Drew, chief investment officer offered to resign as news of the trading loss broke Thursday, but now it’s official. Reports indicate at least two other executives at the bank will leave, but so far there’s been no indication that Dimon will be among those out.

Who is surprised?

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Photo from Mike Licht NotionsCapital.com via flickr.

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24 comments

+ add your own
1:35AM PST on Feb 4, 2013

These are so ready to jump of the boat.

Wow.

4:07AM PDT on May 16, 2012

And again....

5:37PM PDT on May 15, 2012

Nothing to see here, folks, just move along. Oh, but be prepared to fork over trillions of dollars once again the next time the "too big to fail" banks recklessly get into financial trouble---once again. Nothing has changed.

3:49PM PDT on May 15, 2012

Those running big business (and in particualr those running the banks) have shown that they cannot be trusted and that they let their greed get the better of them then, when it all goes wrong, they expect ordinary tax payers to bail them out. The only answer for this is to reverse the trend that has been growing for many years of hands off Government. If tax payers are expected to pick up the pieces (and the costs) when things to wrong then they (or rather those who represent them - Government) must get a say in what is going on. The idea that Government has no place in business has been proven to be wrong - time for a change of heart!

3:06PM PDT on May 15, 2012

*Brittany Spears tune* “Oops we did it again.”

@ Steve R. & J effrey H. blah, blah, blah, blah, blah, blah, blah.

1:30PM PDT on May 15, 2012

Having caused so much strife and economic disastre, it's amazing how few of the banking sector have actually faced penal sentences.

12:24PM PDT on May 15, 2012

This may be just the tip of the iceberg. Some of these people should be behind bars and not working to figure out more ways to screw us out of money.

10:52AM PDT on May 15, 2012

Why are these people still walking free and not in prison??

9:58AM PDT on May 15, 2012

Thank you for the article...

9:14AM PDT on May 15, 2012

Dear politicians:

Please get your mitts off of reproductive choice and slap them onto the stock and bank industry as I think Wall Street and banking industry are more likely to wreck our country than a pack of birth control pills, and when and how someone chooses to have a baby. They tried their worst all the way up to 2008; let's not give them a second chance please. Thank you for your attention to this much more urgent matter.

Love,
Laurie

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