Jamie Dimon was one of those bank chiefs Obama famously said his administration is what separated these bankers from the pitch fork. Now on the block, JP Morgan is on the hook for $13 billion. I think this is only the base number but already more than twice what BP had to cough up for their historic oil spill in the Gulf.
JP Morgan is teaching us the limits to a bank size. More important shareholders realize that it is near impossible to find competent people to run a bank so huge and complex. Furthermore a behemoth like this become a juggernaut and bullies itself to huge profits. Besides being too big to fail, it is also too hard to find a competent CEO. I think this is the only reason why Jamie Dimon's job is safe. His bank as he seems to run it as such will have to be broken up systematically or the market will do it for you chaotically.
The days of the big banks are over. LKY and LHL were both wrong about the future of banks. I seethed at how LHL used us at great cost to our savings to execute his financial industry promotion plans. Think the toxic products which were sold to our 'sophisticated' investors. Fortunately we were never big enough and especially failed to attract the ablest but the least ethical into our banks. There were never enough responsible bankers to make a difference. Those who tried ended up resigning or just gave up steering themselves to safe corners. Welcome to the close of an evil age.
Update: October 21, 10:10am
BofA is the next bank on the block. Slowly but inexorably one by one they would be hauled up. I wonder when some top bankers will go to jail. This is a difficult one but might yet happen eh?
Update: October 23, 9:35am
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