Fallout From JPMorgan Chase $2 Billion Loss

Monday, May 14, 2012

The fallout from JPMorgan Chase’s incredible $2 billion trading loss is officially underway. Three high-ranking officials with direct connections to the bank’s high-cost trade blunder are reportedly resigning this week, including chief investment officer Ina Drew, who was one of the most powerful women on Wall Street.

The doomed trading was intended to protect the bank from financial risk, but things went south thanks to a soured bet on credit derivatives. Michael Greenberger, financial law professor at the University of Maryland School of Law and former regulator at the Commodity Futures Trading Commission joins the program.

Guests:

Michael Greenberger

Produced by:

Marc Kilstein

Comments [6]

anna from new york

"I expect that it will be viewed as an imperative to keep up the pressure on the JP Morgan/Chase story."
Hard to believe, Charles. Two billions just .... disappear and the problem is ... that we are talking about them. Charles, we aren't talking enough. I am wondering now how many millions of innocent employees of American companies were squeezed and fired so ... two billion could reach Wall Street.

May. 14 2012 04:24 PM
Charles

I expect that it will be viewed as an imperative to keep up the pressure on the JP Morgan/Chase story. It is a story that somehow casts Wall Street as bad guys, and supplies electioneering platforms to people like Barney Frank (who has lame ducked himself and isn't running for anything, but who is still supplying unforgettable television appearances like the angry one on ABC last Sunday), Elizabeth Warren and The Takeaway's expert du jour, Michael Greenberger. You know; "Wall Street," "the 99%," "income inequality," "Occupy," "deregulation chaos," etc.

As I say, I expect a steady diet of that from The Takeaway. And not, say, another point of view, heretofore unvoiced on the program, from someone like the Wall Street Journal's Paul Gigot, who may have had a hand in this lead editorial in today's Journal:

http://online.wsj.com/article/SB10001424052702304371504577402331446053716.html?mod=WSJ_Opinion_LEADTop

May. 14 2012 02:12 PM
listener

So a CEO resigns when he loses two billion?
What happens to politicians like Dodd and Frank when they mismanage trillions with their votes with no serious budget to show for it? Graciously leave office or in the case of the President ask for four more years in office?
Is Mr. Corzine still giving advice to the administration?

"Progressive" regulation caused the environment of this economic crisis and the guest calls for more "progressive" regulation in the name of two politicians with their own checked economic histories.

May. 14 2012 10:45 AM
anna from new york

I don't understand the "logic" of some. What her claim has to do with the fact that Dimon is evil? Chase is my bank .. don't get me start.
Maybe, maybe it's time to mention countless class action suits against Chase and the entire criminal behavior of this criminal institution in the years leading to crisis ... and later (with the friend in the White house)? Or just another friend?

May. 14 2012 08:16 AM
anna from new york

Bravo, Elisabeth Warren. It takes courage to face one's own professional demagogues and bigots - the ones who "Occupy Wall Street" and bubble about "bankers" while canonizing the most evil - yes, our President's friend - Jamie Dimon.

May. 14 2012 08:11 AM
Charles

You gotta be kidding me. There's been a serious controversy surrounding Elizabeth Warren for more than a week, and it now appears that her claim of Cherokee heritage for purposes of affrmative advancement in academia were phony.

And the first time in a week that you mention Elizabeth Warren is to hold her up scolding Jamie Dimon?

May. 14 2012 08:08 AM

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