Tuesday, May 22, 2012
SENATOR TIM JOHNSON, CHAIR OF THE SENATE BANKING COMMITTEE, WANTS JAMIE DIMOND, HEAD OF JPMORGAN CHASE (AND JOHNSON'S LARGEST CONTRIBUTOR), TO COME TESTIFY HOW THEY LOST $2 BILLION "HEDGING." HOWEVER, THE FOX GUARDING THE CHICKEN COOP IS JUST THE TIP OF THE ICEBERG: DIMOND HAS ALREADY DEMONSTRATED THAT HE DOESN'T UNDERSTAND THE KIND OF HEDGING HIS COMPANY HAS BEEN DOING, LEHMAN BROTHERS' MISTAKES CRASHED THE WHOLE WORLD'S BANKING SYSTEM 4 YEARS AGO, AND NOW THERE IS A MAJOR FINANCIAL CRISIS BREWING IN EUROPE THAT COULD EXPLODE INTO A GLOBAL CRISIS AT ANY MOMENT ...PARTICULARLY IF REST OF THE BIG U.S. BANKS HAVE BUNGLED THEIR "HEDGING" AGAINST A LIKELY GREEK DEFAULT AS BADLY AS JPMORGAN JUST ADMITTED TO.
J.P. Morgan Funds Senate Finance Chair, Even Bigger Problem in the Wings
Tom Ferguson: Euro crisis may have more devastating effect on US banks than previously thought
Thomas Ferguson is Professor of Political Science at the University of Massachusetts, Boston and a Senior Fellow of the Roosevelt Institute. He received his Ph.D. from Princeton University and taught formerly at MIT and the University of Texas, Austin. He is the author or coauthor of several books, including Golden Rule (University of Chicago Press, 1995) and Right Turn (Hill & Wang, 1986). Most of his research focuses on how economics and politics affect institutions and vice versa. His articles have appeared in many scholarly journals, including the Quarterly Journal of Economics, International Organization, International Studies Quarterly, and the Journal of Economic History. He is a long time Contributing Editor to The Nation and a member of the editorial boards of the Journal of the Historical Society and the International Journal of Political Economy.