Wouldn’t This Be Great? What Dimon Should Tell The Gang on The Hill
June 13, 2012 9:55 am
When on the Hill today, Jamie Dimon will be grilled by politicians. Most of the questions will be targeting the risk and how JP Morgan was unaware of the risk and the potential losses. Of course we all know that this will be a show (circus).
So, when Mr. Dimon is asked why the CIO took the risk and how can he allow this to happen.. He should tell them the the truth:
Here is how we see it as a financial institution: Since the government is offering us money for next to nothing and they have done all they can to protect the banks by changing accounting rules, performing bogus stress tests, bought our failing mortgage portfolios and bailing us out when we are in trouble – we thought that, what the heck! Why not take on as much risk as possible (since the who idea behind the Fed’s free money is to help us earn our way out of the bad debt we issued) and if the deals go south, what is the real risk anyway?
Of course we do this under the guise of hedging so it does not look as though we are actually taking on more risk, but you already know that. And since many of you have direct investments in the banks (or want a cushy consulting gig after you leave politics) we all realize that this is just a public effort to win favor with potential voters. So, beat me up and make me look bad, but in the end you will do nothing more than slap us on the wrist. Thank you for your time. When is lunch?