While the repeal of Glass-Steagall was certainly a part of making our system fragile to the point where it is at today, thinking that a simple solution like breaking up the banks will be the panacea that we seek is incredibly naïve.
In spite of attempts to get to the bottom of the causes of the crisis and propose appropriate remedies, many recommendations that have been proposed have been stalled by both political leaders who can't seem to agree on the appropriate level of regulation.
Today, Federal Reserve Chairman Ben Bernanke will be testifying before a House Financial Services Committee. Would it not be timely if he were asked about the role the Fed plays in facilitating the bank holding companies to hold sway in the oil market?
Questions swirl around the character and timing of Dimon's disclosures to shareholders. His public estimates of losses have been a fraction of reality, and it raises the issue of whether he has materially misled stockholders.
Casper's airy little fist packed no wallop when it came to impeding high-risk betting on Wall Street, the LIBOR lending rate manipulation or the disappearance of client money at MFGlobal. There's a much better way than Casper to catch a bankster: pay them to turn each other in.
Prop trading and gambling with depositors money, together with the housing debacle, has focused the anger of the American people on Wall Street. Dimon has made himself the standout of both excesses and has used his position and the resources of his bank to exacerbate both.
As reports that the JPMorgan Chase trading debacle may lead to losses of $9 billion, it's critical that our nation understand what is, and is not, acceptable behavior for a bank in our capitalist economy.