Dimon CEO of Chase can not defend hedging loss.
Scottsdale, AZ -- (SBWIRE) -- 06/15/2012 -- J. P. Morgan Chase Chief Executive Jamie Dimon testified before a Senate Committee, Wednesday June 10. He said that he could not defend how a hedging strategy in a London office of the bank caused a multibillion dollar trading loss. This statement by the Chief Executive of Chase underscores the obvious fact that the big banks are far too large and far too diverse to be managed well. They are so far-flung geographically and in so many different, and often competing businesses to make management reasonable and effective.
We have heard the too big to fail and the too big to manage story repeatedly since the bank .bailout of just a few years ago. This loss by Chase tells the story in no uncertain terms that the failure of one of the "too big too" banks is past the point of a possibility and will become a certainty. It will, most likely, be at an inconvenient time.
In Chapter 15 of his newly published book, Occupy We The People Decision Time For America, economist, investor and author, Victor Weintraub discusses the situation. This problem resulted from the repeal of the Glass-Steagall act. That allowed banks to expand geographically and to go into businesses other than banking. Since the bank deposits of the public are guaranteed by the FDIC and therefore the US Government, banks can take risks with the people's money.
The book deals with other timely and controversial topics. It documents that a progressive income tax with a high marginal rate will stimulate the economy and reduce unemployment. That trickle down job creation has never worked. That 89% of the national debt was spent by and caused by Republican administrations. Reading this book is an eye opener and it will dispel all of the misinformation that has become conventional wisdom.
First Capitol Books is an independent publisher. It publishes a variety of works as both E books and as Paperback print books. The books are available internationally throughout the English speaking world. http://www.firstcap.com
For more information see the web site http://www.occupywethepeople.org
The author, Victor Weintraub is available for interview and discussion. To schedule an interview please contact Victor Weintraub at 480 970 0990 or by Email firstname.lastname@example.org