After JPMorgan loss, a call for stricter oversight
Nancy Bush, a longtime bank analyst at NAB Research and a contributing editor at SNL Financial, said the trades probably crossed that line because they were making money for JPMorgan.
“So they made money on hedges and then they hedged some more,” she said. “At some point it goes from being a hedge to being a moneymaker.”
JPMorgan was seen as a savior of weaker banks during the financial crisis and the only big bank to escape relatively unscathed. His reputation enhanced, Dimon, 56, has been emboldened to challenge efforts to toughen regulation.
In an interview with the Fox Business Network earlier this year, Dimon said that Paul Volcker, the former Federal Reserve chairman for whom the rule is named “doesn’t understand capital markets.”
Last year, he questioned the current Fed chair, Ben Bernanke, about the rules and said they might be delaying the recovering of the financial system and the broader economy.
“Has anyone bothered to study the cumulative effect of all these things?” he asked.
Dimon, who grew up in the Queens borough of New York and was groomed by the former Citigroup chief executive Sanford Weill, has also chafed against Occupy Wall Street protesters.
“Acting like everyone who’s been successful is bad and that everyone who is rich is bad — I just don’t get it,” he said at a conference earlier this year.
On Thursday, at about the same time he was breaking news of the $2 billion loss to Wall Street, Dimon sent an email to JPMorgan’s 270,000 worldwide employees assuring them that the company was “very strong.”
AP Business Writer Marcy Gordon, AP Business Writer Pallavi Gogoi and Associated Press writer Jack Gillum contributed to this report.