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?
Photo from Mike Licht NotionsCapital.com via flickr.