Why Michigan Needs Us to Close the JPMorgan Loophole
As Michigan's economy begins to rebuild, we can’t let another crisis sparked by risky bets on Wall Street put us all in danger.
You’ve probably seen the recent news coverage of losses at the nation’s largest bank, JPMorgan Chase. And you may have seen some of the resulting coverage about bank regulations and something called the “Volcker Rule.” I want to give you my sense of why this is such an important issue to Michigan families and businesses. JPMorgan is a bank, and it does the things you and I use banks for – it offers checking and savings accounts, makes loans for people to buy cars or houses or to invest in their businesses, and so on. But other parts of JPMorgan get involved in little-known financial markets. That’s where JPMorgan made a very big and complicated bet that now has gone very wrong. When JPMorgan first disclosed the problem, it said the bank …
Fort Mackinac
11:18 am on Sunday, May 27, 2012
JP's loss was a small percentage of it's capital and is not consequential to the general public. The shareholders and lenders to JP shoulder the loss. It's the Bank's job to take risks and the capital cushion is there to protect the depositors and allocates the loss to the investors who carry the risk. Please stop over-regulating banks. If you eliminate all the risks from a bank, it ceases to be … more ›