Jamie Dimon: Rescuing Banks Possible If We Stop The "Vilification" Of Corporate America

Bloomberg:

March 11 (Bloomberg) -- Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said the U.S. can rescue its banking system by year-end if U.S. officials start cooperating and refrain from the "vilification" of corporate America.

"If we act like a dysfunctional family and we don't finish these things and we're forever debating them, I think this will go on for several years," Dimon, 52, said at a conference hosted by the U.S. Chamber of Commerce in Washington. "It's completely up to us at this point."

Read the whole story: Bloomberg

Comments

[AnonymousBanker]

Part III. And my final question is this, "Why does Chase (along with most of the other banks) continue to issue ANY form of credit, such as credit cards, without applying the most basic form of 'lending safety and soundness' by verifying income of the applicant. I believe it is because the bank has the ability to sell the credit card loans off (perhaps through the TALF program) to other investors and the general public and in so doing will absolve themselves of the risk on these loans. There cannot be confidence in the banking industry until you all start to apply income verification on every loan issued. Banks are ORIGINATORS of the credit and the public does not want to buy your toxic assets on the secondary market anymore. We will not have confidence in the banks or in the asset backed securities, until YOU start implementing "safe and sound" lending in accordance with EXISTING Regulation H.

[Lawrence Turner]

If the banks started to verify income then it would become readily apparent that many borrowers to not have the ability to ever pay off their loans. Many borrowers depend on the ability of rolling over their loans in the future as they are never able to pay off the principle and must work hard just to meet the interest payments. According to the Bank of International Settlements quarterly report for December 2008 the face value of amount of over-the- counter (OTC) derivatives in the world was $683 trillion while the market value was $20 trillion. http://www.bis.org/statistics/otcder/dt1920a.pdf

IT WOULD TAKE THE ENTIRE INCOME OUTPUT OF EVERY MAN, WOMAN AND CHILD ON EARTH 20 YEARS TO PAY OFF THE PRINCIPLE ON THE DEBT THESE INSTRUMENTS REPRESENT.

[research]

Bingo!

http://www.huffingtonpost.com/users/profile/research?action=profile

Ban derivatives, pay off Swaps using AIG and ratings companies assets,

Write off the rest.

[AnonymousBanker]

Part II. You addressed the "Fundamental causes and contributors" citing "a lot of badly underwritten product" and go on to say "We didn't do it". Yet in your 2007 annual report you state, "We (and by this I would think you mean JP Morgan Chase) should have acted sooner and more substantially to reduce the LTV rates at which we lent, given the increased risk of falling prices in a market of highly inflated housing values. We also should have tightened all other standards (e.g., income verification) in response to growing speculation in the market and the increasing propensity of people to respond to aggressive lending standards by buying houses they could barely afford." Isn't it true that Chase, as the largest mortgage servicing provider in the country, was in the unique position to recognize the coming crisis and didn't you order your Treasury desk to sell as much of the toxic mortgages that Chase held on their books, before the crisis came into full public view? Why would you stand before the US Chamber of Commerce and pretend that Chase didn't help create this crisis along with most of the other banks in the industry?

[AnonymousBanker]

Part 1: In response to Mr. Dimon's comments, "The mortgage business, for the most part, was not regulated." and "Just because regulators let you do something does not mean you should have done it."

Mr. Dimon: The mortgage business WAS regulated, as is all bank lending, through a uniform regulation called REG H in place since 1995. Bankers snubbed their noses at the regulators and continued to violate this law. The failure was not in the lack of a regulation, but in our regulators failure to impose any form of penalty on the banks and bankers that ignored them. Regulators have the ability to impose fines, withdraw FDIC coverage, call for the firing of CEO's, replace bank Boards, restrict dividends, etc. Our Regulators failed this country by not exercising their authority and halting the industries despicable actions. http://anonymousbanker.com/?p=234 (This article includes links to Reg H)

[FloridaMich]

jp morgan announced this week it will be outsourcing another 25% of its jobs to India.

put that up your "big happy family" arse JP MORGAN

[research]

And JPMogan invented the credit default swap.

[rf-hawaii]

The eggspurts seem to agree -- we need to nationalize the banks for a couple years and clean house. This would throw all the demons out and allow the banks to be split up so none are 'too large to fail'.

Seems like the perfect opportunity to fix the whole mess.

[Dunderslapoldmen]

Citicorp reported yesterday that they took 45 B of our tax dollars and turned it into a profit of 7 Billion !! Now that's money management.

[Dunderslapoldmen]

penny stock, move on.

[shamaniceconomist]

At least the "big happy family" message is suitable for the Chamber of Commerce audience. In another venue, the question might not be whether it is possible to rescue the banks, but whether it is good policy.

[pjones006]

How does a post with just 'what?' merit a pending? You'd think they was reading p@rn.

[peacekitten]

maybe if they did, they'd loosen up a little.

[CaliforniaJake]

That might be an improvement if they did.

[Lavafalls]

Ari-"It was an intelligence mistake."
We were wrong about the intellegence but right about getting into the iraq because of WHY?

No justification for the w a r! No reason to lose 4000 troops!

This guy won't cop to breathing air. This spin should be illegal.

[indypete]

Main still seems to be buggered so here's something to amuse those of you who share my juvenile sense of humor.....

http://www.youtube.com/watch?v=TywmpMQYojs

[Kiba]

AAAAAAHAHAHAHAHA, I love it.

[MichiganJFrog]

LOL That's pretty dang funny!

Try this on for size.
http://www.youtube.com/watch?v=Pqxyi8iyLGE

[indypete]

High-effin­'-larious!

[Kiba]

Whoa. Dude. That was like... wait. What were we talking about?

[CaliforniaJake]

HAHAHAHA I needed that!

[CaliforniaJake]

Hehehehehehehe

[Rule Of Law]

http://www.kpfa.org/archive/id/49073

[dandypuddin]

Mr. Dimon requests a cease in the vilification until the banks are done plundering and looting.

[PhilipTaylor]

Exactly! Quite while we plunder and loot!

LOL!

[kittykali]

they've had eight years to steaI........time's up!!!!

[suemag]

Oh, please, give me a break!

[indypete]

As you wish....

http://www.youtube.com/watch?v=McThDshEgU0

[GrouchoMarxist]

LOL! Good one.

[Lavafalls]

HeII of a break!

[peacekitten]

dang pete! i had no idea you were a snooker fan! that was a helluva break! i haven't watched a match in ages!

[suemag]

Amusing.

[suemag]

Just call me the Princess bride.

[ExcommunicatedPagan]

Concerning the main thread,

The only battle Ari could win is the Battle of the Biggest Flag Pin.

[GrouchoMarxist]

Matthews had the temerity to actually question the Approved Republican Talking Points(TM) and it got Ari all upset. He almost cried.

[Bitsko]

That was pretty funny wasn't it?

[MichiganJFrog]

Me too.

Of course mine was from laughter...

[SaviourMachine]

I love how the modskwad hasn't figured out we can post on the main subject on another thread when the main is jammed.

[MichiganJFrog]

Regarding this thread:

Does Jesus still save at Chase? ;-)

[ExcommunicatedPagan]

First National of Haifa

[Lavafalls]

Didn't save this foool from total humiliation.