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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-13-12 05:54 AM
Original message
Democrats say J.P. Morgan's loss shows need for tighter banking regulations.
Edited on Sun May-13-12 05:56 AM by No Elephants
Gee, youdda thunk global economic collapse had already shown the need for tighter regulations on derivatives, ala something like, you know, the ones FDR put in place after the crash of 1929 and Bubba and Greenspan successfully urged Democrats and Republicans to repeal. Or the ones Volcker recommended.

Thread on J. P. Morgan's two billion dollar loss:

JPMorgan gives Volcker rules new life

Published: May 12, 2012 at 10:59 AM

WASHINGTON, May 12 (UPI) -- A $2 billion loss at a U.S. bank validates the need for tougher banking regulations, Democrats on Capitol Hill said.


Meanwhile, the so-called Volcker Rule, named after former Federal Reserve Chairman Paul Volcker, is still being shaped by policymakers at the Federal Reserve.

The rule is meant to limit or ban banks making bets on the market with their own money -- what is generally called proprietary trading. The wording for the rule is not in its final form, however. How strongly worded it will be has yet to be determined.


"How many times do we have to be hit in the head with a financial sledgehammer to wake up and realize we've got to take action? The big banks have been fighting Dodd-Frank tooth and nail. Regrettably, the banks have largely been successful," said Rep. Peter Welch, D-Vt.


{J.P. Morgan CEO with whom the buck stops on the recent $2 billion loss} Dimon once said Volcker "doesn't understand capital markets."

Frank had an answer to that this week. "I don't think Paul has lost $2 billion recently. He's going to have to stop making cracks about how Paul Volcker doesn't understand the system," Frank said.

Read more:

Supposedly, Democrats wanted Obama to appoint Volcker, but, instead, he took a right turn and went with the Geither, Summers, Bernanke combo, aka 0 for 3.

And dncha love how Frank, long standing member of the banking committee and co-author of Dodd Frank, is now saying bank regulations need tightening? I am very fond of Frank, but geez.

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KoKo Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-13-12 03:51 PM
Response to Original message
1. I was hoping the latest from JP Morgan "betting" would have
loosened the lid...but, I thought that with MF Global and John Corzine is still doing just fine.

I don't know what it will take for the Wall Street criminals to be held accountable. And, Statute of Limitations" is running out for some of the activities and so I think for hope after the election for accountability is going to be limited.

I don't understand it except that so much money goes into both Politicians pockets from Wall Street/Banks and US Chamber of Commerce that no politician or regulatory agency can move to prosecute.

It will take another blow up that's huge where they come begging us taxpayers again to bail them out... :shrug:
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-14-12 02:12 AM
Response to Reply #1
2. No one in the U.S. will hold them accountable.
I would be satisfied if we just put decent laws and regulations in place to prevent more of the same in the future.

However, now that pension funds are so heavily invested in the stock market, all Wall Street has to do is mention that Wall Street might get skittish if X or Y is done and everyone stops in their tracks.

Of course, Wall Street's campaign donations to both major Parties help a lot, too.

We are so screwn.
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