If you can grasp what happened in the London Office of JPMorgan Chase, then you probably could become the next CEO of the bank as it seems the current CEO Jamie Dimon had no clue. On Thursday last week, Dimon, with his pinky planted in the corner of his mouth, announced that JP Morgan Chase lost 2 billion dollars, though reports state the loss could go as high as $5 billion. Will there be any fallout from this loss? It appears that JPMorgan Chase will be able to absorb this loss, but after Dimon and other Wall Street executives have been campaigning against further banking regulations, have they lost that battle? As Paul Krugman writes:
For the moment Mr. Dimon seems chastened, even admitting that maybe the proponents of stronger regulation have a point. It probably won’t last; I expect Wall Street to be back to its usual arrogance within weeks if not days.
But the truth is that we’ve just seen an object demonstration of why Wall Street does, in fact, need to be regulated. Thank you, Mr. Dimon.