Business As Usual

If you think that the power of the banking industry may be in decline, or that its leaders are humbled, or that any kind of major change is underway, please review carefully Jamie Dimon’s speech from Wednesday, March 11 (available on Bloomberg.com).Mr. Dimon, who runs JP Morgan Chase, makes it clear that he has great respect and appreciation for all that Hank Paulson did for the financial sector.  He also strongly implies that it is time for the government to stop worrying about what approach to adopt; as far as he is concerned, the time for wrangling and figuring out what went wrong is over and the time for really big transfers of taxpayer value is now.

There is no sense here that anything much has changed.  Sure, we’ve lost some banks, we’re in a big recession, and everything we thought sensible for banks in terms of regulation/risk management/corporate governance lies in tatters.  But it is obvious, from the words, tone, and body language of Mr. Dimon that he thinks his side has won and it is back to business as usual, albeit now with a somewhat larger market share.  On all of this, he probably has inside information.


Originally published at the Baseline Scenario and reproduced here with the author’s permission.

3 Responses to "Business As Usual"

  1. Mark   March 13, 2009 at 2:14 pm

    Yes, Mr. Dimon probably has inside information as do Messrs. Lewis and Pandit who had the temerity to announce “profits” at Citibank and BofA for January and February, 2009. Geithner, Summers, and Bernanke will socialize the losses of the entire world, if necessary, to pacify Wall Street and prevent another “Lehman” from happening.

  2. Anonymous   March 15, 2009 at 7:52 pm

    I hope some of them bankers go to prison for their actions.

  3. Anonymous   March 15, 2009 at 8:08 pm

    Dimon finds fault with govt. for asking questions to bankers and seeking some straight answers and accountabilty from them and labels that as “volification”. If these are the type immoral and unethical people continue to be incharge of banks , I can guarentee we havent seen the bottom yet. He wants taxpayers to pickup the tab for his and his cronies stupendous self serving incompetency. Until these idiots are locked up for an extended period of time they are not going to reform.