In this article, federal banking regulators enforce action on JP Morgan Chase because of the multibillion dollar trading loss that they incurred not too long ago. The bank regulators wants the bank to crack down on "bad" or "fake" money. Security levels should be heightened so that tainted money doesn't slip through the cracks. Communication between the bank and board of directors has been quite sketchy as well. More than 6 billion in trading loss has been documented thus far. This problem has even reached the government as Jamie Dimon, the chief executive, had to appear before congress to try and explain this whole fiasco.
What should happen to JP Morgan Chase? In the world we live in today, the biggest banks can take on the most risk without hardly any consequences. The government will most likely bail them out, just like they have before. (Too big to fail)?
Among the six largest banks in the United States, Mr. Dimon was the highest-paid chief executive, receiving $23.1 million in 2011. That year, his total pay package was made up of stock and option awards along with a $4.5 million cash bonus.
Can anyone tell me exactly what Mr. Dimon actually does to receive this outrageous paycheck let alone bonus!?
The fact that big banks can do whatever they want, whenever they want, is one of the things that started the recession in the first place. Until the fed cracks down on these big banks, I think we will continue to have some major problems with our economy.
ReplyDeletePersonally, I think that the people involved in this conspiracy should be fired and replaced with more ethical individuals.
I think it's beating a dead horse a bit if I repeat that I agree with the outrageousness it seems big banks are able to get away with.
ReplyDeleteBut for me another big worry cropped up when I saw this article. Money in itself is kind of an abstract concept. As out recent class talked about, the Fed can just make more whenever it sees fit. The biggest concern we face is if people lost faith in our currency. The fact that a big bank was taken by fake money, it really makes me wonder how much 'money' is floating around out there that really doesn't exist?
There is one thing undeniable about money is that it is so powerful People with so much money in their hands are granted an enormous power to control others and to change wrong things to right things. Big banks have been granted so much power and favors from the government so they know they will be "untouchable" by the Senate, the Supreme Court, Congress and Fed. As long as Fed still keep feeding those big banks and do not control how big banks use the money, USA economy is having big problems. If the chief executive is not doing the right things, he does not deserve to receive that amount of money. The economy is facing with huge debt so instead of giving those money for big banks to be wasted, the government should use that money for the people who need it.
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