Jamie Dimon, CEO of JPMorgan is one of the chief opponents of financial reform, and in particular the Volcker rule. Prohibit banks from trading on their own accounts? Absurd! What could go wrong? We'll all be happy to bail them out again, right?
The irony is that the losses came from the desk that's supposed to be hedging AGAINST these sorts of losses. Looks like Dimon's really earning that $23 million salary.JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said the firm lost about $2 billion on synthetic credit securities after an “egregious’” failure in its chief investment office, which the bank says focuses on hedging.
“This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed,” the New York-based company said today in a quarterly securities filing. JPMorgan declined 5.5 percent to $38.50 in extended trading at 5:55 p.m. in New York.