Monday, May 14, 2012

Why We Regulate

The big banks fight governmental regulation and, what they call, governmental interference. I think of the old expression, “give ‘em an inch and they’ll take a mile!”
by Charlie Leck

Don’t think of me as distrustful. I’m not – I’m not, at least, until it comes to billions of dollars on the loose, wondering where to go and what to do!

The JP Morgan Scandal
Jamie Dimon is the Chair and C.E.O. of J.P. Morgan. He has been one of the nation’s most outspoken critics of government regulation of the banks. Dimon has consistently called for less regulation and interference, so banks could do what they do best – handle their customers’ money.

Late last week, Dimon angrily announced that his foolish bank had frittered away nearly two billion dollars in ridiculous investment ventures. He was all self-righteous about it, calling some of his employee dopes and fools. He wondered how such an idiotic thing could have happened.

In light of all this, I recommend you read the Paul Krugman column in the NY Times: “Why We Regulate.”

Here’s a NY Times story about some of the firings as a result of the huge losses; however, Jamie Dimon stays on.

The American banking and investment industry has caused the nation an enormous amount of problems in the last six years and, yet, they keep lobbying for lighter, looser regulation. Nonsense! But face it, under Mitt Romney you could absolutely count on more freedom for the industry to invest as they choose – even if they are supposed to be safe-guarding the funds of their customers.

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