How Wall Street Aims to Keep U.S. Regulators Out of Its Global Betting Parlor
The Commodity Futures Trading Commission, the main regulator of derivatives (bets on bets), wants to extend Dodd-Frank regulations to the foreign branches and subsidiaries of Wall Street banks.
Horror of horrors, say the banks.
"If JPMorgan overseas operates under different rules than our foreign competitors," warned Jamie Dimon, chair and CEO of JP Morgan, Wall Street would lose financial business to the banks of nations with fewer regulations, allowing "Deutsche Bank to make the better deal."
This is the same Jamie Dimon who chose London as the place to make highly risky derivatives trades that have lost the firm upwards of $2 billion so far — and could leave American taxpayers holding the bag if JPMorgan's exposure to tottering European banks gets much worse.
The Dimon Loophole
Dimon's foreign affair is itself proof that, unless the overseas operations of Wall Street banks are covered by U.S. regulations, giant banks like JPMorgan will just move more of their betting abroad — hiding their wildly-risky bets overseas so U.S. regulators can't control them. Even now, no one knows how badly JPMorgan or any other Wall Street bank will be shaken if major banks in Spain or elsewhere in Europe go down.
Call it the Dimon loophole.
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http://finance.yahoo.com/blogs/the-exchange/reich-wall-street-aims-keep-u-regulators-global-161002056.html?l=1
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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