dagblog - Comments for "DIMON APOLOGIZES FOR JUVENILE DELINQUENTS"

Thanks Destor. Hopefully in

Oxy Mora — Sat, 29 Jan 2011 13:09:13 +0000

In reply to Here's how myths get made.

Thanks Destor. Hopefully in some small way we can help keep the truth alive.

Dimon made addititional statements to Bloomberg yesterday, reiterating how well the banks are doing. 7% capital seems just fine with him. Geithner has done a good job. Daley is a good guy, has the respect of the business community.

It appears that no one in the Obama Administration will ever utter another word in support of the decentralization of banks. And the fact that the mega banks fomented a crisis which then exploded the deficit will be excluded from the deficit reduction mania. Let the banks get larger and perpetuate another asset bubble. But for God'a sake, get the deficit under control by gutting the social safety net.

Here's how myths get made.

Michael Maiello — Fri, 28 Jan 2011 22:36:17 +0000

In reply to The mythology, unfortunately,

Here's how myths get made. From The Guardian, a paper that should know better:

"JP Morgan, which employs more than 200,000 people globally including about 17,000 in Britain, was among the more profitable financial players throughout the credit crunch. When smaller rival Bear Stearns failed in March 2008, JP Morgan bought the business to rescue it from bankruptcy – an act, Dimon said, that was at the behest of Washington: "JP Morgan bought Bear Stearns because the US government asked us to.""

Ugh! Dimon has convinced a reporter that it "rescued" Bear Stearns and did it as a public service. It really bought a floundering rival in a fire sale and demanded guaranties from the U.S. taxpayer to boot. In exchange, JPMorgan Chase got hold of an incredibly lucrative and well known prime brokerage and clearing business. That part of Bear was coveted by all its rivals on Wall Street. Dimon didn't do anybody any favors. He boughts something he probably wanted anyway and we promised him he wouldn't lose money on it.

The mythology, unfortunately,

Michael Maiello — Fri, 28 Jan 2011 19:11:01 +0000

In reply to DIMON APOLOGIZES FOR JUVENILE DELINQUENTS

The mythology, unfortunately, plays right into Dimon's agenda. So far as the public is concerned, JPMorgan Chase was never in serious trouble. Indeed, it was the only strong bank and that's why the Fed turned to Dimon for help in "rescuing" Bear Stearns. Though Bear's clearing business was a legitimate asset that Dimon no doubt wanted, what he really bought (with taxpayer money) was the heir of being the "responsible banker." At the start of the crisis it was Dimon and Blankfein who were the leaders. Their banks, we were told, were not failing. They didn't need help. Them good. Pandit bad. Then Goldman took that backdoor AIG bailout. Chase got lots of help from the public. JPMorgan wasn't strong, it was merely stronger than its peers. That was enough to feed the Dimon mythology though.