JPMorgan Chase faced intense criticism Friday for claiming that a surprise $2 billion loss
Contents contributed and discussions participated by stefan ayache
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Banking industry faces calls for tougher regulation after massive loss at JPMorgan - Wi... - 0 views
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the colossal misfire was cited as proof that big banks still do not understand the threats posed by their own speculation
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JPMorgan is the largest bank in the United States and was the only major bank to remain profitable during the 2008 financial crisis
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the $2 billion loss came from a hedging strategy that backfired, not an opportunistic bet with the bank's own money
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recharged a debate about how to ensure that banks are strong and competitive without allowing them to become so big and complex that they threaten the financial system
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The JPMorgan loss did not cause anything close to the panic that followed the September 2008 failure of the Lehman Brothers
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they involved "synthetic credit positions," a type of the complex financial instruments known as derivatives
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Corker, a leader of a failed effort last year to block a Federal Reserve rule that slashed bank profits from debit cards, called for a hearing "as expeditiously as possible"
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A mistake was made. Money is going to be lost. It's not customer money. It's not government money. It's JPMorgan's money, the shareholders of JPMorgan
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changes promoted by the Obama administration were in many cases similar to what the financial industry had sought before the crisis
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Dimon said that Paul Volcker, the former Federal Reserve chairman for whom the rule is named "doesn't understand capital markets."
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"Acting like everyone who's been successful is bad and that everyone who is rich is bad — I just don't get it," he said at a conference earlier this yea
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sent an email to JPMorgan's 270,000 worldwide employees assuring them that the company was "very strong."
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Hedge Funds Are Shadow Banks in Need of Regulation, Bafin Says - Bloomberg - 1 views
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Hedge funds act as shadow banks and should be added to the list of organizations in need of regulation
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So-called shadow banking that takes place outside the scope of regulators is being targeted by financial watchdogs on concern that it may be used to evade a global clampdown on excessive risk-taking
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German banks that lend to local economies dominated by medium-sized companies are seeking to loosen standards for risk weighting of these loans
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12-year-old Ontario girl slams modern banking system, becomes YouTube hit - thestar.com - 1 views
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Canada’s banking system has been the subject of international praise from economists grappling with global turmoil, but one 12-year-old girl begs to differ
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earning a reputation as a financial pundit after her tirade against her homeland’s borrowing practices
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aim at Canada’s modern day financial system and champions a greater role for the country’s central bank
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governments began borrowing from private banks instead at considerably higher interest rates than those available through the central bank
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arguing borrowing from the Bank of Canada would shore up depleted government resources and usher in an era of prosperity for Canada
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Such a change in monetary policy, combined with crucial changes in tax policy, would make available tens of billions of dollars that are urgently needed to rebuild our public infrastructure, protect our environment, and strengthen Medicare and other social programs so vital in meeting human needs
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Critics of Crowell’s arguments contend inflation rates would soar if the central bank was able to lend money below commercial interest rates
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Mortgages: More than half of Canadians to carry household debt into retirement | Mortga... - 1 views
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People are more sophisticated in their approach to personal finance today than the previous generation
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People are living longer, working longer and making real estate plans longer or further into their lives
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Another trend, one which was not considered by the industry before, is people moving into more expensive, upscale homes after retirement
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Another part of the trend could very well be strategic. With rates on a five-year closed mortgage at about 3.5%, paying down that debt might not seem as high a priority for many homeowners
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The extremely low level of interest rates is acting both as an inducement for people to take on more debt than they would have in the past and on the flipside not encouraging them to save as in the past
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People could end up working longer and it might also mean there will be that much less equity in the home you’ll be leaving to heirs
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the issue is how it’s affecting retirement with half of Canadian homeowners saying their debt load was hindering their ability to plan and save
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JPMorgan Chase's 'Jamie the Great': tap dancing with derivatives | Opinion | The Seattl... - 2 views
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Three top executives of British firms were sacked in revolts of shareholders, who also rose up against giving new executives millions in "golden hellos."
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Dimon's admission on "Meet the Press" that his team was "sloppy" and "stupid" and used "bad judgment" in incurring the loss
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led to the rolling of three heads at the bank, an FBI investigation, and a congressional ramp-up for more chiding hearings
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While the trade was "poorly vetted and poorly executed," he said it wouldn't make a dent in the "fortress balance sheet."
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hould our company really be spending shareholder funds on, some $7 million last year alone, on lobbying efforts to thwart the Dodd-Frank legislation and the work of regulators to write the rules stemming from that legislation?"
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the group endorsed Dimon's pay package of $23 million and let him keep his dual titles of chairman and CEO
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he's known as the favorite banker of the president, who called Dimon "one of the smartest bankers we got"
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New York City's chief audit officer is urging Dimon to "claw back" salary and bonuses paid to the top executives who dragged the bank into the excessive risk
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loathe to "act like a judge and jury" with Ina Drew, the head of the investment office who resigned on Monday, given that she lost $2 billion on that deal while she was making $9 billion on others
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You have to earn respect every day. It's never how great we are. It's always the good, the bad and the ugly
Bank of America-American Bank involved in many high profile banking stories
Financial Crisis- started towards the end of 2008 with the crash of Lehman Brothers, brought the financial system to its knees. This was due to problems in the credit markets, after many homeowners with subprime mortgages started defaulting on their mortgages and getting foreclosed upon, losing their homes
Housing bubble- housing prices going above their value, ends with a sudden huge drop in housing prices
Goldman Sachs- American Investment bank, still around after the crisis, are now quite profitable, have no souls
Merrill Lynch- American Investment bank which shut down during the crisis
JPMorgan- American bank, was the only bank to remain profitable during the crisis