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JP Morgan heats up bank regulation debate

Dimon

Jamie Dimon, CEO of JPMorgan Chase, will face shareholders at the bank's annual meeting in Florida today for the first time since the company revealed its $2 billion trading loss.

An editorial in the New Jersey Star-Ledger says this latest incident is proof that, despite bringing the American economy to its knees in previous gambles, big banks continue to take risks that put the entire economy in danger.

"Dimon and other bankers must now admit their human penchant for error ā€” errors that can bring down the economy, as we learned in 2008 ā€” and get out of the way of common-sense regulations such as the Volcker rule and its parent, Dodd-Frank, the major banking reform of the post-meltdown era," the editorial board writes.

Warren

Elizabeth Warren has called for Dimon's resignation from his board post at the New York Federal Reserve. "The banks cannot regulate themselves," she said on 'CBS This Morning.' (Read more of her opinions in this Washington Post blog).

Newsweek correspondent Michael Tomasky thinks Dimon should resign, too--from JPMorgan.

"Iā€™m well aware that the suggestion will strike most people as ridiculous. And I am here to say that the very fact that it sounds ridiculous demonstrates the sickness that we have come to accept as normal. We live in a society whose elites do everything they can to take no responsibility for anything," Tomasky writes in the Daily Beast.

 Obama

President Obama, in an appearance on TV talk show "The View," said the fact that one of the country's smartest, best bankers can make such a huge mistake in the derivatives market shows the need for its regulation.

"Keep in mind if we get all the rules that we proposed and were passed by Congress implemented into law, it should prevent this kind of stuff from happening ,"Obama said . "But this, again, is going to be part of what the election is about. We've got real differences here, because Governor Romney, members -- some of the Republican members of Congress and the financial industry have been arguing that this is unnecessary, that this is impeding capital formation."

tagged

Banks | Regulation
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