Jamie Dimon, Treasury Secretary? Evaluating The Rumors

The New York Post reported this morning that lawmakers are discussing JPMorgan Chase CEO Jamie Dimon as a potential replacement for current Treasury Secretary Timothy Geithner.

Leaving aside concerns that appointing a Wall Street CEO to the Treasury's top position would draw heavy criticism over Wall Street's coziness with Washington, it's not clear that Dimon would be a natural fit in the Obama administration. According to the Wall Street Journal, Dimon departs from White House policy on a handful of key issues.

For one, President Obama has pushed establishment of a consumer-protection agency that would keep watch over credit card and mortgage companies, but Dimon opposes the agency on grounds that it will drive up costs. JPMorgan says recent legislation regulating credit cards could cost the bank up to $750 million a year, a burden that may be passed along to consumers.

And while the White House's position on how to handle too-big-to-fail banks is still evolving, Dimon has staunchly defended big banks' right to exist -- and to fail. In a Washington Post op-ed this month, Dimon wrote:

"...ending the era of "too big to fail" does not mean that we must somehow cap the size of financial-services firms. Scale can create value for shareholders; for consumers, who are beneficiaries of better products, delivered more quickly and at less cost; for the businesses that are our customers; and for the economy as a whole. Artificially limiting the size of an institution, regardless of the business implications, does not make sense. The goal should be a regulatory system that allows financial institutions to meet the needs of individual and institutional customers while ensuring that even the biggest bank can be allowed to fail in a way that does not put taxpayers or the broader economy at risk."

Anonymous sources told the NY Post that Dimon "would love to serve his country," but is demurring. He has no plans, he says, to leave JPMorgan for the next "six or seven years."

For now, Geithner is still contending with critics in Congress. He was attacked last week during an appearance before Congress's Joint Economic Committee. "Mr. Secretary, the public has lost all confidence in your ability to do your job," Rep. Kevin Brady (R-Texas) told him.

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Comments

[pragview13]

12:34 AM on 11/26/2009

Good God No. I hope now. JP Morgan Chase, Citibank, Bank America and the entire financial gang brought the country almost to a total implosion - and why is it that Obama picked Timmy baby, Robet Rubin and Summers (who had their hands in credit default swaps and other nefarious financial products) to be within shouting distance in his administra­tion. A lot of people in the big apple are dismayed

[ResearchtheFacts]

07:59 PM on 11/25/2009

Send out a strong message on black Friday "no buy day". Either you are going to continue to be a passenger in the car and taken for a ride or you are going for the driver's seat.

Boycott and tell Congress why! Vote your congress member out next year--all seats are up.

Our country men are falling like dominos hitting the streets in record numbers, jobless and homeless. Why purchase new stainless steel appliances when you could lose your job and house like many other Americans who are now standing in unemployme­nt lines, living in storage units, cheap motels or sleeping on the streets?

No political party is for the people, it just sounds good in their political speeches.

First loyalty is upholding the system, does not matter how well or poorly it is operating. Second loyalty to big money campaign donors this helps to keep the process ongoing. Third and least, American people–who else would they give their flowery speeches to or receive adulation from?

Where will you be come 2010?

1.Unemploy­ed
2.On food stamps
3.Running for office
4.In holiday purchasing or credit card debt
5.Foreclos­ed on
6.In student loan debt
7.Protesti­ng at tea parties
8.Stressin­g about retaining your employment
9.Continuo­usly writing congress
10.Boycott­ing elections
11.Marchin­g on Washington
12.Looking for employment opportunit­ies
13.Retirin­g without a plan
14.In-sour­cing or outsourcin­g jobs
15.Startin­g a business
16.Living on the streets


http://hit­eminthewal­let.wordpr­ess.com

[ResearchtheFacts]

07:43 PM on 11/25/2009

Is this a joke? Or yet another slap in the american publics face?

[lvdragonlady]

03:34 PM on 11/25/2009

Putting this 'person' in the treasury position would be similar to hiring a fox to watch the hen house.
This is a very very dangerous person to give that kind of power too.

[lily31]

02:43 PM on 11/25/2009

We don't need another "inside" guy to guard the henhouse!!

We do need Eliot Spitzer ..........­.. a man who is very familiar with the culture on Wall Street and wants to change it so that the emphasis is on integrity and making sure regulation­s that would reign in the last 10 years of "me first" philosophy are recommende­d to Congress and endorsed by the Department­.

We need a man who cares about the country and its long term health and also Main Street and the American people

Spitzer would be a breath of fresh air!!

[nccp1870]

02:09 PM on 11/25/2009

This would just be replacing one Wall Street Toadie with an understudy who probably is not as skilled.
What a joke!

What we need is a bull dog enforcer like Eliot Spitzer. The Secretary'­s immediate undersecre­taries can specialize in banking, bonds, insurance, monetay policy, etc. while he or she makes sure the financial arena is fair and balanced.

That should be the Secretary'­s number one goal this term and it certainly is not anything Time Geithner even thinks about.

Thank you Mr. Geithner for the good things you were able to do and now, goodbye. It's time for us to move on to the next steps of solving Too Big to Fail and Too Important to Follow any Rules.

[lily31]

02:36 PM on 11/25/2009

I totally agree regarding Spitzer ....... he is not a push over and knows the ins and outs of Wall Street corruption and lawlessnes­s!

[MarkVA71]

12:02 PM on 11/25/2009

This guy is worse than Geithner.

[textynn]

09:10 PM on 11/24/2009

Go ahead Dems make our day and appoint J P Morgan Chase to be in charge of the hen house. This is outrageous­. It reminds me of the point in the murder movie where the loving husband finally reveals himself to the main character and says " I only married you for your money , what did you think I was really in to you." Then shoots her.

[PhilipTaylor]

05:36 PM on 11/24/2009

A MUST READ:

Powerful Indictment of Goldman by many sources!

Where is our Criminal justice System?

Tell me again why are they still in Business?

http://www­.marketwat­ch.com/sto­ry/15-sign­s-wall-str­eet-pathol­ogy-is-spr­eading-200­9-11-24?

[textynn]

09:23 PM on 11/24/2009

Tonight on PBS at 9 pacific is a show entitled "Card Game" about credit cards. I got really interested because I recently learned that our government is outsourcin­g food stamp and welfare intake to India call centers. Which is beyond the pale, but the kicker is JP Morgan Chase owns these call centers. During a food stamp or welfare intake process applicants reveal every last detail about their financial situations and all sensitive info like 401ks, bank accounts, everything a person owns and everything anyone in the household owns or earns or has, car titles, you name it. etc. Then I hear this guy in the show talking about how the poorest people who have credit card debt is where the big money in the credit card business is. They simply get them on the hook for more and more through late fees and higher interest rates and penalties etc, then sue them. Seeing how this is all working hand in hand is starting to actually freak me out. I feel that something bigger and more oppressive is coming. Im really flabbergas­ted by this whole arrangemen­t. Then this story pops up. What do you think it means.

http://con­sumerist.c­om/2009/04­/were-outs­ourcing-fo­od-stamp-j­obs-to-ind­ia.html
http://www­.pbs.org/w­gbh/pages/­frontline/­creditcard­s/

[Carolab]

10:57 PM on 11/24/2009

Yes. JP Morgan is JUST as bad as Goldman if not worse!

[JBS]

04:59 PM on 11/24/2009

Sure. That's just what we need. Another Wall Street Bankster insider.

Worked so well with Paulson and Geithner.

[JBS]

05:01 PM on 11/24/2009

And why not Ken Lewis former (soon to be former?) Bank of America CEO.

I hear he's looking for a job.

[PhilipTaylor]

04:24 PM on 11/24/2009

THIS GREAT RECESSION WAS CAUSED BY A CRISIS OF OVERCHARGI­NG USING HIDDEN FEES!

JAMIE DIMON and JPM ALREADY HAVE FAILED:

JPM0RGAN $81TRILLIO­N in Toxic Derivative­s!

http://www­.occ.gov/f­tp/release­/2009-72a.­pdf
It is on page 23!

JPM+G0LDMA­N routinely Hides fees for Derivative Contracts public records show.
__________ __________ ___

JPM CAUGHT RED-HANDED BY FBI FOR USING DERIVATIVE TO STEALING FROM SCHOOLS AND CITIES:

Link: http://www­.bloomberg­.com/apps/­news?pid=2­0601014&si­d=aIL9gsK5­wG40

Example 1: JPM made more money than it paid out for Erie, Pennsylvan­ia School District=
School Got = $755,000 and JPM collected $1.2 million in fees.

Example 2: JPM made over $4 Million on Philadelph­ia Intern Airport $6.5 Million Derivative
In SEC testimony “They're about getting fees and getting the most fees they can get.” that is 10 X Cost of a bond issue. JPM bankers then gave $280,000 to Airport Executive’­s school district for signing Contract.

Five JPM derivative bankers are targets in investigat­ion of banks conspiracy to overcharge local government­s!

How Fees Are Hidden: JPM locked in FEES selling a Mirror-Ima­ge Swap Contract on open market for MUCH Higher Amount.

FEES are hidden in Derivative­s and then skimmed into the pockets to maximize Employee incomes?

JPM made that a common practice (FBI Case) and we know G0LDMAN does it also!

JPM+G0LDMA­N routinely Hides fees for Derivative Contracts public records show.”

[PhilipTaylor]

04:25 PM on 11/24/2009

HOW HIDDEN FEES IN DERIVATIVE­S SCAMS WERE USED TO STEAL THE FUTURE - Following what FBI investigat­ion of JPM found!

Having worked with CPA's and Managers Building Complex Math Models all my life I have some insight into what Bankers and their PhDs did in creating LUCRATIVE DERIVATIVE­S! Retired now!

Question Bankers had was how to increase Salaries/B­onuses to $Tens/Hund­reds of Millions using Derivative­s.

Buying&Rep ackaging&S elling mortgages could not provide enough PROFIT MARGIN for MASSIVE INCOMES!

Bankers decided to "STEAL the FUTURE" using statistica l+mathema t ical Projection­s of Housing Hyper-Infl­ation (2003-06 PEAK)!
__________ __________ _____

HOW Banksters stole OUR FUTURE!

Look under the HOOD of a Derivative­= a bunch of mortgages sliced and packaged together+H­IDDEN FEES

1. Used Math Models to Project Housing Hyper-Infl­ation 2003-2006 forward TEN+Years.

2. Add Projected Growth in Fees to Cost of Derivative s-Capturin g FUTURE GAINS.

3. SKIM off FEES into Executive/­Employee Incomes!

4. Sell FEE Laden High Risk Derivative­s as Fake Rated "AAA" Low Risk paper.

Derivative begin life at say 50% of FACE VALUE (projected hyper-infl­ated future value)

Reason Derivative­s are worth Near ZERO after housing dropped less than 50%.

Derivative­s should be worth 50% but NO! NEAR ZERO!

Simple Models to STEAL AMERICA'S FUTURE resulted in Hidden “Off-Balan­ce-Sheet” Toxic Derivative­s

[PhilipTaylor]

04:25 PM on 11/24/2009

Laws on books - LACKING IS AN HONEST ADMINISTRA­TION TO PROSECUTE!

“Misrepres­entation” during SALE is contract law concept, meaning false statement of fact made by one party to another party, which has effect of inducing that party into a contract. For example, false statements­/promises made by seller of goods regarding the quality/na­ture of the product that the seller has may constitute misreprese­ntation.

“Insider Trading” is trading securities by individual­s with access to non-public informatio­n about product/co­mpany. Taking advantage of non-public informatio­n by an insider during performanc­e of insider's duties, or in breach of fiduciary duty/relat­ionship of trust/conf­idence.

“PREMED1TA­TED MANUFACTUR­ED 1NSIDER TRAD1NG”
a. Make SureFailMo rtgageProd ucts knowing they will fail
b. Buy Massive A1G CreditDefa­ultSwaps Betting “SURE FAIL Products” will FAIL!

Make it to fail&bet it will fail: "Manufactu­red-Inside­r-Trading" 100% Sure BETS!

[RMMV111909]

02:36 PM on 11/24/2009

It has become abundantly clear the Wall Street bunch is so crooked they couldn't hide behind corkscrews­. This better be a rumor because if Obama does this, I know I will be through with him.

And just for the record, I not only voted for him, I campagined for him.

[yourmonscalling]

02:14 PM on 11/24/2009

another crook

[LiberalDem]

01:19 PM on 11/24/2009

And how would this apologist for the status quo improve things? Or did he contribute so much money to the democrats that he qualified for a cabinet post?

[winningticket]

11:55 AM on 11/24/2009

Jamie Dimon, the cry baby who thinks that the public is being unfair to Wall Street. I love Obama, but if he appoints this hooligan, he can forget my vote in 2012.

[cecebo]

01:02 PM on 11/24/2009

I am right behind you.