In the wake of JP Morgan’s $2 billion (and counting) loss this quarter, Robert Reich makes the case for breaking up Big Banks and resurrecting the Glass-Steagall act to separate commercial and investment banking. According to MoneyNews, while the public face regarding the situation blames a ‘rouge trader,’ in reality this is not the case.
Believe it or not, some considered the JP Morgan losses ‘small’ and therefore not worth disclosing in such a public fashion. As reported in Zero Hedge, JP Morgan’s CEO Jamie Dimon responded this way to the question about ‘why disclose this info now?’:
“It could get worse, and it’s going to go on for a little bit unfortunately,” Dimon replied.
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