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Jamie Dimon Endorses Letting Giant Banks Fail, Firing Incompetent Executives and Clawing Back Executive Compensation
But Bill Black Demolishes Dimon’s Fake PR Campaign
Jamie Dimon told Meet the Press:
We support getting rid of “too big to fail.” And it’s very important that—and this is not—this is a—not going to even remotely—we’re going to make money, we’ve got tons of capital. But we support “too big to fail.” We want the government to be able to take down a big bank like JPMorgan, and it can be done. We think Dodd-Frank, which we supported parts of, gave the FDIC the authority to take down a big bank, and when it happens, I believe compensation should be clawed back, the board should be fired, the equity should be wiped out, and the bank should be dismantled, and the name should be buried in disgrace. That’s what I believe. We need to put that back in the system, and we’ll work with the regulators to try to get that back in the system.
Of course, letting insolvent and poorly managed banks fail, firing executives, wiping out shareholders, and clawing back executive compensation is just what the doctor ordered … in 2008. If that had happened, then we would be through the economic crisis by now.
Moreover, Bill Black (professor of economics and law and former chief S&L regulator) responds to Dimon’s statement by making a very important point:
You can’t have a system work the way he is saying. So, if the institution is allowed to stay this large, it will be too big to fail, and its creditors will be bailed out. And that’s to prevent what is feared to be a cascade of failures, in which one big bank would then cause the failure of the next big bank, etc., etc., and you would have a global crisis. So, allowing them to be this big, even conservative economists call this crony capitalism, and they say that it creates such competitive advantage in it for the systemically dangerous institution—JPMorgan in this case—that it is the equivalent, when they compete with smaller banks, of — and I’m quoting — “bringing a gun to a knife fight.”
So the only way this can work is to shrink the systemically dangerous institutions—this is the 20 largest banks in the United States—down to the point that they no longer pose a systemic risk, they are no longer too big to fail, and therefore, they will no longer have this implicit federal subsidy that completely distorts competition. And, of course, we’re not just talking about destroying market systems; this also destroys democracy, because these giant institutions have so much political power. And lastly, the statement is completely disingenuous because JPMorgan in fact opposes all efforts to get rid of “too big to fail.”
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As soon as Jamies lips were moving you knew he was lying.
That's why Bernie and Corzine have beards.............................. it hides the lips.
Green slime huh? Never heard that as a description for financial derivatives. That would look really pretty with the pink slime.
The very best thing that can be done to rich a-holes - make them poor.
I think that the Chairman of the Board, the Board and the Officers of the company need to be individually liable to the shareholders and/or investing institutions for any misconduct that results in material losses. The minimum level of liability is - wait for it - all wages/stock options/remuneration that has been given to you - by the firm. If you are criminal - the clawback moves to personal property with jail time as a potential bonus.
Individual responsibility - the same kind that the rest of the folks (you know - the little people) have to live with. (i.e. you work for the company - you do a damn good job - but someone else screws up - you are now unemployed - or the company has a change in strategy - or a predator LBO firm shows up - boom - misery). This would also put the so-called executives in a position to really live the role of an independent business man/entrepeneur.
I wonder how many of the A-holes would sign up for this deal?
Too big to fail for banks is pretty much like building a ship with just a handfull of water-tight compartments. If any one of them fills the whole ship sinks.
"We want the government to be able to take down a big bank like JPMorgan"
HA HA HA HA HA HA!
LMFAO!
HA HA HA HA HA HA!
A-Hole! POS! Douche!
That is funny! The gooberment enables them to be corrupt, so the word thick as theives come to mind.
harkens to the day when the banks railed against the creation of a Fed Res, to headfake the masses
Liberty or Death.
Fuck Dimon.
Barry's asking the FBI to investigate the safety of his account. Makre sure his account is not Corzined.
You mean, fraudulized like his mortgage note?
Jaime Dimon's parents are from Greece.....irony there, for sure.
BTW, not only is William K Black the fuckin' man, but i also think that Ina Drew *is* a man. What an ugly fucking woman!
She was not so ugly twenty years ago. Do a search and you will find pics of her when she was in her 30s. Pretty good looking woman then. Age is not always friendly to us humans on the aesthetic front. ;-(
Personally do not think she is that bad myself, given her age of 55. I've seen a lot worse.
.
She's eaten well these past few decades.
Well the PR campaign is being orchestrated by the White House. LOL
Too true... That is Obama's bank
I wonder how many other politicans use them too, either party.
Jamie Dimon, run, run, runs his mouth,
Instead, resign, resign, resign, please!
JD eats shit.
Like Bear Grylls?
..and it's Bennys job to pick it up
Don't you mean tax payers job to pick it up?
Kiss - Lick It Up
Isn't that from his interview with Amy Goodman? Posted that earlier this week. Good Stuff. Something's wrong with your country when someone who used to be a chief prosecutor for bank corruption can't get major media to listen to him.
He was clearly referring to BofA and Citi. They can die for all he cares.
Bill Black is talking in circles and is purposely misleading, because he can't really believe the shit he's espousing. First off, no body wants democracy, it sucks and provides an easy step to tyranny. Secondly, the only way to preserve a democratic republic, which is what we have, or used to have and which everyone wants to return to, is impossible with the 2B2Fail banks and their banksters operating. They have to be dismantled along with their toxic stews of CDO's and CDS's, and that's just a start. Go to www.nar2012.com for the full scoop.
Serfs Up America!
Oh Yeah?
Thats where your death wrong.
Every body wants Democracy,not Corruption,and there is a hell of a difference.
As long as politicians are bought and payed for,there cant be any real democracy:But when we(Imagineble thinking)join together,we can take down this corrupted constrution,that used to be democracy,but now a days are plain Depocracy,full of stardom,and no wisdom,PHD people who know everything, about nothing.
What is it that takes a winner,a lot of loosers,so we just kill this equation,of with the winners,and there will be no loosers,so f.king simple is it.
I know it lays deep in the human mind set,this stupidity, I have to Have More Than You,this is what kills solidarity,this word that has become,The Curse to the unhuman race,in there race to nowhere:
Here is the killer:No one on this planet shall have a salery,that is different from their neighbor,mening no matter what job you have:The salery are equal=No winners No loosers no Popes no Kings,just plain us,and i dont meen Usa i meen us!
You know, comrades," says Stalin, "that I think in regard to this: I consider it completely unimportant who in the party will vote, or how; but what is extraordinarily important is this — who will count the votes, and how.
that is what people believe when they believe they've actually had real choices for politicians.
Yep, the representative republic we had is what brought us to what we now have.
he's controlled opposition, another satanic self-chosenite.
yep, not unlike heap big liar elizabeth warren.
OK... but let's include public whippings, dunkings, and my favorite, firing squads for counterfeiting gold with tungsten.
I'd like to have the criminals shot, pissed on, rolled in flour, and deep fried - but that is going too easy on them - too short and sweet. Let the criminals who fucked America, real good, do hard time, life without parole. Reprehensible criminal acts, perpetrated by thieves in government, Wall Street, and the banking industry.
COLLABERATING TOGETHER TO FUCK THE ENTIRE COUNTRY INTO THE TOILET FOR THEIR OWN BENEFIT.
Hard time, bankster bitchez. Your cell mate, Lenny the Blimp, will make you comfortable, and even pack your fudge for you !
I'd like to see him prove that he is not a lying sack of shit. Talk about dreaming the impossible dream. What he is saying is Pink Floyd at it's best. " I'm all right Jack, just keep your hands off of my stack. " Everybody else can follow the rules now that JP is writing them. Go die in a fire.
id like to see him prove the 3billion hedge had a counter trade.