JP Morgan Loss Spurs Regulation Talk
MAY 14, 2012
“J.P. Morgan Chase & Co.’s stunning after-hours announcement Thursday of a $2 billion loss on a complex bet sent shock waves through the nation’s capital Friday, as lawmakers blamed financial regulators for continuing to allow the same risky activity that nearly sunk the global financial system four years ago. . . . In the aftermath of that crisis, the Federal Reserve was given greater supervisory responsibility for large investment banks, which had transformed themselves into bank-holding companies in order to enjoy greater taxpayer support amid the crisis. Fed staffers are now located in the biggest banks and were supposed to be policing their risk-taking to protect the financial system.” (McClatchy)
The pretence of knowledge.
FEE Timely Classic
“Bad Regulation Drives Out Good” by Sheldon Richman