JP Morgan Chase CEO Jamie Dimon this week announced that the bank he heads lost $2 billion making risky trade under the guise of “hedging” (which is meant to reduce risk). Dimon has been one of the biggest critics of the Volcker Rule, which is meant to prevent banks from making massive bets with federally insured dollars.
Dimon appeared today on NBC’s Meet the Press, where he was asked by host David Gregory if JP Morgan’s massive loss shows that the banking system — just a few years after a financial crisis that nearly brought the global economy to its knees — is still too risky. Dimon replied, “I don’t think so”:
GREGORY: Have you given regulators new ammunition against the banks?
DIMON: Absolutely, this is a very unfortunate and inopportune time to have had this.
GREGORY: But if the best of the best can’t manage a risk like this, does it not tell you that the banking system is still several years after the financial collapse, too risky?
DIMON: I don’t think so. It’s a question of size. This is not a risk that is life threatening to JP Morgan.Watch it:
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