Fairytale Capitalism

JPMorgan Chase, Derivatives and Really Crazy Too Big To Fail

Jamie Dimon is still both chairman and CEO of JPMorgan Chase. That was a decision appropriately left to shareholders. Some may have hoped that systemic risk could have been reduced by separating the two roles at the nation’s biggest bank. Why should financial market structure center on the abilities of one man? Mr. Dimon certainly is a very talented…

Read More

It’s a Charade

The U.S. government’s lawsuit against credit rating agency S&P hit many as it did me. It may have plenty of merit, but it appears to play a larger role in a huge, bipartisan charade. Our most powerful government officials would have the public believe that systemic risk has been vastly reduced. That isn’t true. They would…

Read More

Bailing Out Promises

“No more bailouts!” That’s the latest campaign promise from both presidential candidates. Congressmen have claimed that regularly, too. But bailouts of the biggest banks continue. What they are bailing out may surprise you. In Congressional hearings the biggest banks want us to believe they are like the little savings and loan portrayed in the movie It’s a…

Read More

Banks? Heck, No! They’re Great Big Hedge Funds!!!

Paul Volcker knows something you don’t know and that Congressmen don’t want to know. The biggest banks have become massive collectors of hedge funds and other alternative private investment vehicles, hidden behind a facade of traditional banking. To understand this is to understand a major reason why Paul Volcker proposed the Volcker Rule. The largest banks are no longer about traditional…

Read More

The Morgan Stanley Puzzle

Grab your jackhammers. Let’s do some drilling. The Federal Reserve’s behavior towards Morgan Stanley is puzzling. How much of the puzzle is Morgan Stanley’s own doing, and how much is the Fed’s?

Read More
Back to the top