DealBook: In JPMorgan Chase Trading Bet, Its Confidence Yields to Loss

In my interview with Sen. Carl Levin today, he said that "the nature of Wall Street's function has changed. They still argue that they're providing capital and stimulating innovation, and to some extent they are. But there's been a significant shift here to the model where they're out for themselves. Their client is themselves."

Who are the Evil Bankers?

Felix Salmon recaps an interesting argument he had with Robert Pozen, author of the new book Too Big to Save:

By Simon Johnson Just when it seemed that the debate over banking was winding down – with overwhelming victories on almost all dimensions for the people who run the world’s largest cross-border financial institutions – two of the biggest name policy heavyweights have entered the arena.  Both voices are typically listened to most carefully within official circles and yet their messages today are diametrically opposed. Which one is right?

Dubai is not too big to fail. That seems to be the message of the surprise 6 month debt standstill at Dubai World, the most indebted offshoot of the UAE's most indebted emirate.

EU officials have hatched a plan to make banks and bondholders take losses for risks, not now of course, but after 2013. In the meantime, taxpayers will shoulder 100% of the losses for bank lending stupidity. On this confidence inspiring news, European bonds rallied sharply. Bloomberg reports EU Bank Writedown to Exclude Pre-’13 Debt