As limited government Republicans we don’t want governmental over-regulation. But we also can’t have under-regulation to the point where banks get so big they’re seen as “too big to fail” (thus needing taxpayer dollars to bail them out). No bank’s failure should be able to cause systemic risk. The following is from Charles Gasparino:
The $2 billion trading loss at JPMorgan — a failure of the famed risk-management prowess of bank chief Jamie Dimon — is cause for celebration in some quarters.
Dimon deftly steered his bank from most of the excesses that brought about the 2008 banking crisis. He’s since emerged as the industry’s chief spokesman — an effective one — against some excessive regulations in the Dodd-Frank financial-reform law.
So fans of Dodd-Frank aren’t too unhappy at seeing the Great One take a tumble.
But JPMorgan’s mess doesn’t necessarily mean Dodd-Frank is the answer. It’s also fodder for those who argue that JPMorgan — and Citigroup, Bank of America and the rest of the country’s large financial institutions — are simply too big to manage and need to be broken up.
Here’s the link to my review of Gasparino’s excellent book “Bought and Paid For: The Unholy Alliance Between Barack Obama and Wall Street”:
“An unholy alliance against the American taxpayer “
