The video below details how the vice chairman of the FDIC, Thomas Hoenig, is against big, complex banks. He explains at the point Bear Sterns was bailed out they were one of the top five biggest investment banks and the intricacies inside the bank were so complicated that it took a toll on the U.S. and world economy. Hoenig is not against big banks, but rather banks that are complex and so powerful that they can bring down an entire economy, like the crisis of 2007/2008.
Jamie Dimon, CEO and chairman of JPMorgan, believes that bigger banks are better for business.
Link: http://www.nytimes.com/video/2013/03/15/business/100000002119957/a-strong-voice-against-big-banks.html
2 comments:
It is tough to take Jamie Dimon's words seriously as it is in his best interests for the government to permit large banks to operate as he is the CEO of J.P. Morgan Chase, which is one of the largest banks in the United States. I am all for banks becoming less intricate. During the 1980s, Howard Rubin, one of the top bond traders in the world, lost $250 million on a single trade. During the financial crisis Howard Hubler lost $9.6 billion on a single trade. I believe that individuals in investment banks should not individually be able to take positions that have the potential to ruin the firm's total revenues for an entire year. Therefore, I agree with the FDIC chairman.
I see you have been reading The Big Short???
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