Today’s event of the day in the business and financial world was certainly JP Morgan’s Jamie Dimon reporting in D.C. to the Senate Banking Committee. A lot of people have probably expected something special coming out of this hearing. Watching and listening to it, from my view, the hearing was for the most part a waste of time. While the committee has the need to demonstrate that they do something, the hearing didn’t really bring this over. It is obvious that many people on this committee actually don’t even understand what this is about and what is discussed, and much more, what Dimon says in his response.
From Dimon’s view, it must be a waste of time. He has to run the biggest bank around and has a schedule that stretches over months. Understandable that at some point in this hearing he was annoyed and bored. It sure is difficult to keep quite when listening to lawmakers that read their questions from paper, word by word. Respect Jamie Dimon, for staying cool.
What do we take from this? In my opinion, the most remarkable statement Dimon made, was the one when he agreed that we need strong regulation and not more regulation. With that statement he stepped on the toes of both parties. Jamie Dimon stated that we have missed out to fix a few holes over time. If this will put a different light on the regulation discussion has to be seen. Dimon’s colleagues from other banks, industry and political lobbyists will probably not like that statement and will try to twist and turn things so that it is fitting the political agenda and pocket.
While many want to undo deregulation, others want to loosen up or at least leave regulation as it is. The problem is, as the past and the newest JP Morgan case show, regulations are clearly not good enough and in some cases make no sense at all. The problem was obviously caused at the time when the financial industry was deregulated in 1999. While deregulation took place, the rules and regulations for the most part were never adjusted to the new circumstances and the new players at the table. With the political stalemate in D.C. and elections in November, it will be some time until something happens, if at all. Until then we will have to calculate in that at any time someone might gamble the house, or the country, away.