by Chidem Kurdas Regulation advocates seem to regard the JP Morgan loss as the best thing since sliced bread. Thus Paul Krugman gleefully bawls out Mitt Romney for refusing to see it as a sign for greater government intervention. Krugman repeats the by now well-known argument on banks, as a riff on “It’s a Wonderful … Continue reading Krugman on Banks and Romney
by Chidem Kurdas There’s a widespread impression that the $2 billion-plus trading loss JP Morgan Chase announced a few days ago strengthens the case for more regulation of banks. Below Jerry O' Driscoll makes this argument more thoughtfully than I've seen any where else. Two basic facts are worth remembering. Fact number one is that in … Continue reading Should Banks Just Buy Treasuries?
by Chidem Kurdas Is the Federal Reserve a hotbed of trustbusters? Fed officials (as well as some academics) have been calling for forcible downsizing of big banks . “I am of the belief personally that the power of the five largest banks is too concentrated,” Dallas Federal Reserve Bank president Richard Fisher said a few days … Continue reading Big Bank Obesity Conundrum
by Chidem Kurdas Jamie Dimon, the chief executive of JP Morgan Chase, says regulatory policy is working against economic recovery and as such is contradictory. His complaint is about the new bank rules, but in fact government actions in myriad areas are at odds with each other. Consistency does not appear to be an object in … Continue reading Why Public Policy Is Inconsistent