Quote of the Day: Other Bankers are Even Dumber Than Jamie Dimon


From JPMorgan CEO Jamie Dimon, on whether his bank’s $2 billion trading loss suggests that bank trading ought to be more closely regulated:

Just because we’re stupid doesn’t mean everybody else was.

Dimon is digging himself an even deeper hole here. Here’s the thing: JPMorgan really does have a sterling reputation. So does Dimon. By consensus, he’s probably the best big bank CEO around. But even so he managed to lose $2 billion in a few weeks.

Luckily, no big harm was done. JPMorgan has a solid balance sheet, the banking system is on solid ground these days, and the loss means little more than a hit to earnings. But think about this: If even JPMorgan can lose a colossal amount of money on stupid trades. If even JPMorgan has lousy controls in place. If even Jamie Dimon allowed himself to be lulled to sleep by a star trader. If all that happened, what are the odds it’s not going to happen to a less well managed bank in the future, and happen at a time when it turns into another Lehman Brothers and shorts out the entire financial system? The odds are way too short for comfort, I’d say.

Would even Jamie Dimon take that bet?

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.