Banksters and Members of Congress have been downplaying JP Morgan Chase’s sudden loss of $2 billion, and arguing that the loss doesn’t mean Wall Street needs more regulations. But now, the New York Times is reporting that that $2 billion dollar bet gone bad might actually turn into a $9 billion hole in the books. Internal models at the banks project losses as high as $9 billion over the bungled trade.
Right about now, Congress should be kicking itself for not pressing JP Morgan Chase CEO Jamie Dimon harder over what exactly went wrong at the bank. Instead – since Dimon has paid off most Members of the House and Senate Financial Committees – our lawmakers kissed his ring.
Let’s not make the same mistakes twice – time to regulate Wall Street and turn banking into a safe and boring business once again.