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"Too Big to Regulate"

edited May 2012 in Fund Discussions
J.P. Morgan Chase’s revelation of its surprise trading loss of more than $2 billion has renewed questions among former regulators and other observers about whether U.S. regulators can exercise adequate oversight of global bank operations.

“They are too big to regulate,” Sheila Bair, chairwoman of the Federal Deposit Insurance Corp. between 2006 and 2011, told MarketWatch.

Comments

  • edited May 2012
    So, we'll go, "Oh my, this is outrageous, what should we do?!?" We'll think up some ineffective regulations (but forget to actually, you know, regulate), then banks will threaten and say everything is going to be armageddon squared if anything is done to them, they'll pay people off. Then people from the regulators wind up in cushy positions in the banks - hmmm, wonder how that happened.

    http://en.wikipedia.org/wiki/Regulatory_capture
    http://en.wikipedia.org/wiki/Regulatory_capture#Securities_and_Exchange_Commission_.28SEC.29

    Absolutely nothing will get done by this administration (because when the Jon Corzine situation happened they did all sorts of ... nothing - plus, you have former tax cheat and Goldmanite Geithner out today acting all sorts of faux-outraged about JPM), and if Romney gets into office, nothing will be done by his administration.

    People enthusiastically supported bailing out the banks, then they went right back to doing what they're doing. It would not surprise me in the slightest if one of these banks had some sort of LTCM-style situation, and JPM just hired a former LTCM trader (and head of the Treasury Borrowing Advisory Committee) as CIO (http://www.zerohedge.com/news/jpm-retires-ina-drew-appoints-chairman-treasury-borrowing-advisory-committee-cio-head)

  • edited May 2012
    Now guys, you must remember many of these folks belong to some very elite clubs, both visible and otherwise. Article II on page 2 of the rules and regulations indicates that full employment will be maintained for you; if you are accepted for membership. The rotation of chairs of position and power during modern western history is as evident today as always.
    I will presume my original (1973) request for membership into one of the elite groups on the east coast has and continues to be lost in the mail system. :):):)

    Enjoy the remainder of your day..........

    Catch
  • Dear Sir:

    We have consulted our records, and wish to inform you that your application for membership was in fact received by this committee in August, 1973.

    We regret to advise that the committee recommendation at that time was both negative and unanimous. Unfortunately that position has not materially changed. Please do not bother us anymore.

    Regretfully;
    Select Committee of the Elite Membership Group

    J. Dimon
    Recording Secretary
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