TCTI: Too Crazy Too Ignore
 Dave Ross

How risky is too risky?

June 13, 2012 @ 9:45 am (Updated: 9:49 am - 6/13/12 )

cedargrove

Senators want to know how a banker like Jaime Dimon could take the kind of risk that last month saw JP Morgan lose at least $2 billion on what he himself calls a "stupid trade." (AP Photo/file)

Senators want to know how a banker like Jaime Dimon could take the kind of risk that last month saw JP Morgan lose at least $2 billion on what he himself calls a "stupid trade."

But as CBS's Nancy Cordes pointed out:

"Even a loss of $5 billion, if that's what it ends up being, is small compared to how much the company made in profits last year," said Cordes.

Yes! You can make a tremendous amount of money taking risks like this!

Now people who have worked with him say Jaime Dimon is one of the good guys on Wall Street. And he told the Senate he's supported clawback policies so that traders who screw up pay a personal penalty.

"For senior people, which most of these people are, we could even clawback things like cash bonuses. After the crisis, a lot of people walked away from companies that went bankrupt with a lot of money, some of that was inappropriate," said Dimon.

When asked if this type of policy had been used at his bank, Dimon responded: "These new policies have not been used thus far."

And I'm guessing the REASON they haven't been used is that if you start punishing risk takers when they lose money, they might stop taking the kind of risks that MAKE even MORE money.

And government can't stop this. You outlaw ONE kind of risky deal, the banks will just come up with a slightly different one. Just like when you outlaw one designer drug, a new one takes its place, and the party goes on.

Risk is how bankers get their high.

All we ask -- and I speak for those of us who are hoping not to see our retirements threatened a SECOND time -- is that if you guys are going to manufacture these financial hallucinogens, you not spike the water supply with them.

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Comments (9)


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  • mobeta wrote...
    2 billion a day. Are you kidding me?!?!?!
    June 13, 2012 11:24 am
    Government loses or blows 2 billion a DAY! If Government was a company, everyone up there would be thrown in jail and they are questioning Dimon? It's almost laughable, no it is laughable! We are getting fleeced worse than ever before and this JP Morgan deal happens everyday in trading for crying out loud. Obamamamama has blown that in his 3 years just on vacations for him and his family at 8 million dollars everytime they get on Air Force One which by the way has happen 227 times just last year! Plus it's private funds that invested with JP Morgan and the Dodd-Frankie bill looks like it didn't work but only drives companies out of country to do business. So basically it does nothing. The unintended consequenses the government always does, comes back to bite them and us every time! We need a businessman who understands a macro economy like the U.S. and not a frkien community organizer who has never run a dog gone thing in his life. He is a little boy, amateur posing as someone who knows what he is doing and his gig is up! Whoever voted for him is as clueless as he is. Better days are coming and once we get an adult in office and other offices across this great country, the beast will be released and America will come back with vengence. Time for us to get America's attitude back with it! This divide and blame game will not work this time!
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  • DesertRez wrote...
    I agree
    June 13, 2012 3:40 pm
    with you mobeta except for the part about things getting much better. It's going to get a lot worse!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • mobeta wrote...
    DesertRez
    June 14, 2012 4:28 am
    There is so much cash on the sidelines that once we get good rules and not punish success, it will help get this country going. I'm kind of an optimist even though it's been really hard with Obummmmer in office because he said he would do exactly what he is doing and scared the crap out of business people including me. I haven't done hardly anything and refuse to support this imposter in office in my own little way. Once he is gone, I will start to participate in a huge way and I think yhou will see companies and corp. do the same. You can't keep punishing success, we will win this battle. Man, he has to go. Can't stand him and what he has done and I know I'm not alone. There is a real dislike of this imposter and he is terrible for America.
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  • messiah101 wrote...
    mobeta
    June 14, 2012 7:52 am
    How about explaing to we non business people just how President Obama scared the crap out of you business people.I'm reading that business profits are up. How has Obama punished you or any other business success ?As far as you last coment goes "There is a real dislike of this imposter and he is terrible for America" Well Friend over 50% of America would disagree with that statement so your side is in the minority and as far as Obama being a imposter let me say this he is your and my President elected by an overwhelming majority.So your nightmare is REAL
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  • mobeta wrote...
    messiah101
    June 15, 2012 5:34 am
    Small minds can not understand macro economics so trying to educate some one who has never ran a company, made payroll or have done a budget (obummer hasn't had a budget in 3 1/2 years) would not understand it anyway. Yes, 50% if Americans are ignorant, look at your comments, they are shallow at best. Just to let you know, he will be thrown out with in a landslide and probably end up in jail for treason after all the other birth cert stuff comes out that he has spent millions to hide and could make it go away by turning over a real birth cert but he can't so here we go. The biggest sham in history unfolding before our eyes. Throw him in jail and throw away the keys! By the way, where did trillions of stimulous money go? His croney's? He's fleecing us more than anyone in history and his sheep like you just follow him over the cliff!
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  • logical independent mind wrote...
    mobeta- you were making sense until the birth cert stuff. Drop this it is a done and buried.
    June 17, 2012 8:33 am
    eom
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  • logical independent mind wrote...
    If Romney wins he will repeal obamacare, allow for the Keystone pipeline, open Artic oil drilling and a few off shore drills as well. He also should take a look at what business say are regulations hurting them.
    June 17, 2012 8:31 am
    They stock market will climb, GDP growth way better than the sub 2% of Today and unemployment will lower, having the middle class spend more. Pelosi, Reed and Obama have damaged the country.
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  • maplefish wrote...
    How bout Obama
    June 13, 2012 8:15 pm
    Blowing $5 Trillion, accomplishing NOTHING and not having to answer for it to anyone? But go ahead and keep being a good little liberal soldier and blame those evil Wallstreet execs and awful corporations while giving the thieves in th Obama administration a free pass.....
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  • messiah101 wrote...
    In other words Dimon told Washington
    June 14, 2012 8:42 am
    That the Banking business is operating just as it has in the past. The GOP and the DEms have not installed any regulations that prevent what happened from happening again.
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