Jamie Dimon, the CEO of JP Morgan, is a Democrat. In spite of recent statements, Dimon leaves room for a conspiracy theory about the latest debacle at that bank. Maybe he's actually trying to open things up for Democrats?
Naw! Dimon spent a lot of time over the past year and more trying to persuade Congress to open up some space for him to work around the new Volcker Rule. Not an effort that would please Barney Frank and Chris Dodd. And it leaves Dimon frustrated and angry at his party.
The charismatic and often outspoken Dimon, who has argued rigorously against strict financial regulations, fielded calls Friday from several lawmakers and regulators at the bank’s Midtown Manhattan headquarters.
The biggest blow-up between Wall Street and Washington since 2010, when Congress passed the Dodd-Frank Act to tighten oversight of the financial industry, comes just as regulators are drafting new rules governing banks. A signature feature of the law is the Volcker Rule, a prohibition on banks engaging in speculative bets. The authors of the act say the measure might have prevented JPMorgan’s bad trades had it been in effect. ...WaPo
So now we have a whole new playing field, one on which members of Congress may possibly start a new game in which the banks are admonished and urged to play by the rules.
We'll see. Meanwhile, The Hill reports that Congressional Democrats think the JP Morgan mess may help them tighten those rules.
When the banking titan announced Thursday evening that one of its traders’ moves had, in six weeks, lost the firm at least $2 billion, backers of the Wall Street overhaul could not have asked for a better example to make their case, or a better time.
"It confirms our view that there needs to be regulation,” said Rep. Barney Frank (D-Mass.), the ranking member of the House Financial Services Committee. “It shows that if it can happen to them, it can happen to anybody.”
Rep. Peter Welch (D-Vt.) said the gigantic loss should be a wake-up call, after banks have been bringing pressure to bear for softer rules.
“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?” he said. “The big banks have been fighting Dodd-Frank tooth and nail. … Regrettably, the banks have largely been successful.” ...The Hill
Trouble is, Congressional Democrats are not only up against the banks, they have to deal with an opposition that, on balance, is even dirtier than Wall Street. Way dirtier.
