Andrew Ross Sorkin has taken the next step and is asking questions relevant to understanding the Banking Industry.
Specifically he questions: when did Mr Dimon, the Chase CEO, know about the “risky” trades and what has he done to prevent future losses due to Hedges, Bets and CDO’s ?
While Congress has deliberated the implementation of the Volker Rule and the (too big to implement) Dodd- Frank Bill, the banking industry has continued to take risks with shareholder monies. When do we become serious about regulating the Banks? If Glass Steagall is not sufficient to curtail these Bets, then shouldn’t government determine the proper additional regulatory mechanism?
- Charlie Munger suggests a 99% tax on flash trades, day trades and hedges. Realizing, a 75% tax may be more reasonable to prevent gambling.
- Here’s another thought. The Chase proxy statement states “that an employee’s pay may be clawed back if their conduct causes losses to the Bank”. Is there any evidence of compliance with the Banks Rules? Should a system of claw backs be implemented to assure accountability and responsibility?
If you run a small business, you have “skin in the game”. Shouldn’t large institutions be equally responsible? Where is the equity under the law?
Why wait for another financial crisis to act?