Praise be to the Job Creators!

From the Washington Post:

NEW YORK — JPMorgan Chase said Friday that a bad trade had cost the bank $5.8 billion this year, almost triple its original estimate, and raised the prospect that traders had improperly tried to conceal the blunder.

“This has shaken our company to the core,” CEO Jamie Dimon said.

But remember, class, these are the Job Creators, and the real reason the economy hasn’t come around is because we’re not giving Wall Street enough freedom and President Obama is hurting their feelings by mentioning every now and then that they wrecked the world economy.

Credit to JP Morgan, though, for this:

The bank said managers tied to the bad trade had been dismissed without severance pay and that it planned to revoke two years’ worth of pay from each of those executives.

It’s sad that that’s a big deal — kind of seems like common sense that if you cost the company $5.8 billion, you won’t be getting a golden parachute.  But for high finance and corporate America, paying out millions to failed executives has become the rule, not the exception.  So credit to Dimon for leading on this issue.

But the very fact that a firm as trusted and well-regarded as JP Morgan — one that largely steered clear of the subprime mess that led to the ’08 crisis — could lose so damn much money on one trade like this is pretty staggering.  The idea that these guys should have even more freedom to gamble with the home mortgages and savings accounts of ordinary people — which is essentially what Romney and the Republicans assent to when they say they would repeal and not replace financial reform with anything — boggles the mind.

In the wake of the financial crisis, many likened Wall Street to a genie that had escaped from its bottle.  The difficulty lawmakers have had reigning it in — Dodd-Frank, while a step in the right direction, has been rendered toothless by the banking lobby — has only strengthened the analogy.  Once a genie’s been freed, it’s tough to recapture.

Difficult, but not impossible.  And, in this case, not trying really shouldn’t be an option.


About Hammertime
Georgetown sophomore, Job Creator.

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