Warm Southern Breeze

"… there is no such thing as nothing."

Posts Tagged ‘deregulation’

JPMorgan Chase CEO blames “Errors, Sloppiness & Bad Judgement” for $2B Credit Default Swap & Derivatives loss

Posted by Warm Southern Breeze on Thursday, May 10, 2012

Give particular attention to this sentence, which is found later in the article: “Bank executives, including Dimon, have argued for weaker rules and broader exemptions.”

Give attention also to the last paragraph of the second story: “Of course, this loss only goes to show how weak the Volcker Rule is: Dimon is adamant, and probably correct, in saying that Iksil’s bets were Volcker-compliant, despite the fact that they clearly violate the spirit of the rule. Now that we’ve entered election season, Congress isn’t going to step in to tighten things up — but maybe the SEC will pay more attention to Occupy’s letter, now. JP Morgan more or less invented risk management. If they can’t do it, no bank can. And no sensible regulator can ever trust the banks to self-regulate.”

Is there any remaining argument against deregulating banks?

Is there any remaining argument against re-instituting the Glass-Steagall Act (which separated Banks, Insurance & Wall Street and forbade them from commingling in each others’ businesses)?

Ahead of the Greek financial crisis – in which Goldman Sachs had a direct and unscrupulous role by hiding sales of financial vehicles from Greek, European & American regulators – German chancellor Angela Merkel said this at a March 5, 2010 press conference in Berlin with Greek Prime Minister George Papandreou, (ref: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a26n.U6qS6cU):

Credit-default swaps, where you insure your neighbor’s house just to destroy it and make money from it, that’s exactly what we have to curb.”  

Now, I wouldn’t expect you or the average reader to be knowledgeable about these things. Honestly, most folks aren’t. But that’s not a condemnation of you, dear reader. Rather, it is a statement acknowledging that banks, bankers, Wall Street types, and Insurance firms do not want to be regulated, and would rather operate free-willy-nilly – without any rules. You and I must  abide by rules. Why shouldn’t they? And as they have consistently demonstrated, they cannot be trusted to do the right thing.

For additional information on Goldman Sachs involvement in the Greek Debt Crisis, I refer you to this 02/08/2010 news item from German news magazine, Der Spiegel: “Greek Debt Crisis How Goldman Sachs Helped Greece to Mask its True Debt,” By Beat Balzli.

JPMorgan Chase acknowledges $2 billion trading loss and ‘many errors’

By Associated Press, Updated: Thursday, May 10, 6:05 PM

JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money.

The company’s stock plunged almost 7 percent in after-hours trading after the loss was announced. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well.

“The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought,” CEO Jamie Dimon told reporters. “There were many errors, sloppiness and bad judgment.”

The trading loss is an embarrassment for a bank that came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.

The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury.

Bloomberg News reported in April that Read the rest of this entry »

Posted in - Lost In Space: TOTALLY Discombobulated, - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Hog Wild in Alabama

Posted by Warm Southern Breeze on Monday, July 26, 2010

“This bill helps somebody – and it’s not consumers in this state… particularly rural residents.”

What FURTHER PROOF do Alabamians need? I’m surprised they continue to elect those INCOMPETENT BOOBS year-after-year. Note to the pols: Just kiss ‘em… ’cause you’ve already screwed ‘em.

To whom will you turn if you have a disagreement with your bill, or if they fail to provide service, but still charge you?

Another word for “regulation” is “rules.” Ever play ANY game without them?

Ref.: Alabama legislators deregulate land line phone service in AL: The end game begins.

Alabama Phone Deregulation End Game Begins in House. Will Legislators Sell Us Out to AT&T? by: countrycat, Tue, Apr 14, 2009 at 08:17:38 AM CDT

“The Alabama Senate passed a bill that Read the rest of this entry »

Posted in - Lost In Space: TOTALLY Discombobulated, - My Hometown is the sweetest place I know | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

A Greece Fire; Thoughtful Commentary on Unthoughtful Commentary

Posted by Warm Southern Breeze on Thursday, May 13, 2010

A Greece Fire; Thoughtful Commentary on Unthoughtful Commentary

Having read Mr. Alex Tokarev’s commentary “My big fat Greek bonus” published online May 11, 12:49 PM at http://online.worldmag.com/2010/05/11/my-big-fat-greek-bonus/, I must admit that some of his concerns are, in part, well taken… however poorly expressed. Though he does not adequately support the case for fiscal prudence, the complaints he makes in general terms about fiscal prudence are well-deserved.

Though his straw man argument is inadequately defended, placing exclusive responsibility and blame upon Greek national officials for that nation’s crisis is insufficient, and certainly short sighted. However, his rambling, miasmatic complaints have not fallen upon deaf ears – although they may have fallen upon spirited ones. Excitement, however, must be directed toward a long-term objective, and it is the more broad scope which I think he ignores. While having the ability to direct the nation toward a long-term goal is laudable, he neither cites any governmental mandate. On the whole, after having read his opinion, one might wonder if he were doing little more than expressing infantile frustration, for he certainly offers no potential solution.

The Grecian debt crisis is not due exclusively to what he calls “the bursting of the statist bubble,” “welfare pyramids” or other descriptive pejoratives to describe Grecian governmental services and activities.

Though he decries “irresponsible lenders and borrowers” whom perpetuate “bankrupt political practices,” he attempts to correlate and demean both, describing what he calls a “strong culture of entitlement” as “a beast,” though he never specifically mentions any program, plan, office, group or person.

As colorful and passionate as he may feel about Greece’s problems, he failed to …Continue…

Posted in - Did they REALLY say that?, - Politics... that "dirty" little "game" that first begins in the home., - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Two Numbers – ONE BIG, one small

Posted by Warm Southern Breeze on Thursday, December 17, 2009

$9,100,000,000,000

Nine TRILLION, one hundred BILLION…

Remember another number.

Two.

During the reign of King George W. Bush, just TWO of his failed policies have cost Americans $9,100,000,000,000.

What two failed policies are those?

The Bu$h tax cuts, and the creation of a Rx (prescription drug “benefit” written wholly by Big Pharmaceutical industry cronies.

The U.S. Census Bureau’s most current estimation of the population of the United States places 308,171,505 people in the United States as of December 17, 2009.

Put another way, that’s a cost of $29, 529 per person.

As a result of deregulation of the financial industries – banks, insurance and stock brokerages – thus creating one giant incestuous financial orgy, Americans have directly suffered under the thumbs of bankers and insurance companies, while their Wall Street cohorts, in conjunction with imaginative thieves, have twiddled and fiddled to create “investment derivatives” – essentially a Ponzi schemed fiscal fraud – out of thin air. That house of cards having collapsed, has revealed what was suspected all along. Outside the transparent dressing room of his glass house, the king had no clothes.

Driven by greed and an insatiable lust for more, …Continue…

Posted in - Lost In Space: TOTALLY Discombobulated | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment »

 
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