Jamie Dimon testified at the Senate Banking Committee in Congress this morning and agreed yep it was wrong, but offers little apology for his involvement in policing his own bank.
Over 2 billion dollars or more was lost by investors, not including the lawsuits that followed last month, but in his statement Dimon thanks his employees and said he was proud of them. Dimon did stress that the Volcker Rule would have prevented this loss from happening, possibly. The trades would have been banned under that rules and perhaps would never have happened.
Clawbacks of bonuses give to Morgan’s employees for these illegal trades was also discussed and penalizing them for bad judgment which is a deterrent for these risky trades.
Wall Street has hired an army of lobbyists to weaken “any regulations” of banks or the investment firms that dabble in ponzi schemes to rob investors. Is it any wonder that not many smaller investors trust Wall St banks anymore and the shaken confidence of the world in US banks.
After the 2008 massive illegal credit default swaps, you would think regulations would have stopped all the loopholes, but unfortunately republicans are on Wall Street’s side proposing to de-regulate them again. After JP Morgan’s recent credit default swap scheme again we are confronted with an unfounded, untrusted financial system of fraud investments three years later.
The Volcker rule was trashed, the Dodd Frank reform was trashed however if Congress does not enact stabilizing laws that are enforced, the US economy suffers and massive investment losses will continue.
For some on Wall Street it has not been a good summer so far, with Europe’s debt problems, new government regulations being written and their bonus money rates are down, they are not very happy.
Wall Street would rather endorse Mitt Romney as their new President to deregulate trades, investments and banks so they can continue on with the fraud and yes he would assist.
Morgan Stanley announced they are laying off 100 traders as the heady troubles of Europe keep blowing towards the US markets. Goldman may also be firing workers soon, as volumes decrease each quarter, and already they’ve fired 4,000 workers.