The press has grosly understated how much risk JPMorgan Chase took. They have erported that the loss was $2 billion and also that the Bank has total assets of $217 billion. All this is true. But the bet they made that lost $2 billion was a $100 billion bet. It only lost 2%. It could have totally tanked. If it had, there is no way JPMorgan Chanse could have covered a $100 billion loss. They would be so far short of it that they wouldn't be able to pay depositors; and once more the US Taxpayer would have to rush in and cover their losses. Once more, the banksters get to keep all the winnings in casino capitalism, and the taxpayers pay when they loose.
Bear in mind Mitt Romney wants to make it even easier for his palls on Wall Street to play Casino Capitalism with all winnings going to them and all losses going to the little people.
Did Dimon (Chase) prefer compensation using terrible judgement in the loss of 2 billion?
Jimbo
2012/05/16 00:44:05
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CtW Investment
Group, a labor-backed shareholder group, last year warned JPMorgan Chase
& Co that its risk management committee was not up to the task and
sought to remove one of its members, Ellen Futter, who had been a
director at American International Group Inc (AIG) before its
near-collapse in 2008.
JPMorgan's proxy statements say the bank's chief
executive is responsible for setting the overall risk appetite for the
firm, while the heads of individual lines of business are responsible
for setting the risk appetite for their respective units, subject to
approval by the corporation's chief executive and its chief risk
officer.
Group, a labor-backed shareholder group, last year warned JPMorgan Chase
& Co that its risk management committee was not up to the task and
sought to remove one of its members, Ellen Futter, who had been a
director at American International Group Inc (AIG) before its
near-collapse in 2008.
JPMorgan's proxy statements say the bank's chief
executive is responsible for setting the overall risk appetite for the
firm, while the heads of individual lines of business are responsible
for setting the risk appetite for their respective units, subject to
approval by the corporation's chief executive and its chief risk
officer.
GMI Ratings gave its lowest rating - "F" - to
JPMorgan's corporate governance policies in general before disclosure of
the loss. Fewer than 5 percent of the companies rated by GMI get the
bottom ranking, said senior research associate Paul Hodgson.
GMI
also ranked JPMorgan's financial statements lower than 92 percent of
comparable firms in terms of accounting and governance risk.
JPMorgan
Chief Executive Jamie Dimon acknowledged that the trading strategy that
led to the loss was "flawed, complex, poorly reviewed, poorly executed,
and poorly monitored."
http://www.reuters.com/article/2012/05/15/us-jpmorgan-warning...
The FBI and SEC are investigating JP Morgan Chase.
http://www.nbcnewyork.com/news/local/JP-Morgan-Chase-Loss-FBI...
http://www.forbes.com/sites/halahtouryalai/2012/05/15/more-ba...
Top Opinion
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ETpro 2012/05/16 00:58:33
Bear in mind Mitt Romney wants to make it even easier for his palls on Wall Street to play Casino Capitalism with all winnings going to them and all losses going to the little people.