The Banks Again: When Will We Learn?
By Elliott R. Morss:In 2007, the banks gambled on mortgages and lost, causing the largest global recession since 1929. They then gambled on European sovereign debt and lost. And now we hear JPMorgan Chase (JPM) just lost $2 billion on a derivatives bet. Should this not be the last straw?There are important lessons to be learned from all this, lessons the bank lobbyists don't want anyone to hear.
Lesson One - More Regulation Is Not the Answer
The immediate reaction to the JPM fiasco is to look at bank regulatory filings. But note: The New York Times reported that neither the U.S. nor British regulators were even aware of the JPM unit that made the trades until they were tipped off by the media.Are tougher regulations the answer? No. Banks given the latitude to do what they can do now will always be one step ahead of the regulators. We haveComplete Story »
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