The $2 billion (or 3 or 5) debacle at JP Morgan Chase was an unwelcome reminder that banks are still taking outrageous risks that they didn’t used to. As Elizabeth Warren likes to say, banking is supposed to be boring. Time to ditch the exotic derivatives and get back to some good, old-fashioned boring banking that doesn’t take the rest of the economy along with it when it does something reckless.
Posts Tagged ‘risky investments’
Hmmm. A ginormous financial institution gambles with depositors dough and loses BILLIONS. Head of said financial institution, ironically, has been the poster boy in a Wall Street campaign to avoid having any government regulations imposed on them to avoid such risky behavior. Conservatives continue to preach that the country’s financial situation would be okey-dokey if only government regulators got out of the way and let the free market do its magic. The operative word here being “magic.”