"The five largest Wall Street banks, including JPMorgan, now control more than half of the banking industry’s $15 trillion in assets." Why were bank mergers allowed to occur to create these 5 monster banks? They should be broken up into smaller regional banks, otherwise they will continue to dominate the financial industry and us! (And provide crappy customer service!)
"Why were bank mergers allowed to occur to create these 5 monster banks? "
As you may recall, we had a financial breakdown starting in 2008. Huge losses by the largest players in the sector (Banks, investment banks, insurance companies etc.) threatened a replay of the crash of 1929 and ensuing Great Depression. Merging the failed players with the few that were still relatively strong e.g. JP-Chase, BofA etc. was seized by the government like a lifesaver ring to mitigate the huge cash outflow from the treasury needed to stabilize the situation. Dodd-Frank was supposed to be the concession extracted from then to compensate for the bailout, but it's provisions were steadily watered down or not enforced.
I like my bank: Citizens Bank! They treat me VERY well and always have. It takes 30 seconds to switch the very small amount of money I DO have between my Checkings and Savings.
My credit union started charging me for the accounts. But, hey the accounts now include benefits that I will never use or already have from other sources. I left them.
Are we to take it then that your singular experience with one branch of one bank, is a clear indication that the banks have learned their lesson and in general are doing a great job and require less regulation now instead of more?
Same here with Patelco Credit Union which offers almost anything a member would like, including all SORTS of online banking, super easy. Credit unions are an overlooked option.
Yes, but the solution is one for individuals and not the broader system. I use a credit union for local business, but it's strictly a local enterprise.
Yes,due to the high leverage that a bank employs they are risky,so need strong regulation. Basel 3 is the standard now.This lifted CET 1 ratios to 13% if I recall correctly,I would need to look at the annual reports.The reports arrive 2 this month,and 2 in December.
As Robert said it does reduce the amount they can lend out .The US system does seem to be a bit out of step with other countries.
Banks here( Australia) pretty much sailed through that period.Four large and strong banks with I think 10 - 11% tier 1 capital ratios then.
Short selling in financial stocks was banned to prevent tumbling share prices,and the govt stepped in with deposit guarantees to prevent a run on the banks .The UK was experiencing runs then so regulations were quickly brought in here to stop that.
They also had raised capital from shareholders through rights issues.As at least 50% of the banks are owned by pension funds it is generally an overnight exercise there.Retail shareholders then wait for the capital raising booklets to be sent out explaining why capital is being raised,and risk that may or may not occur.Nobody has to buy the shares being offered.Then 2 months later get to buy shares at whatever the pension funds bought them at,or slightly below that price.All in all the old "the time to buy is when the blood is flowing freely on the streets".State banks that had been taken over by foreign banks to gain a foothold were quickly sold back to the big 4 banks at loss to the foreign banks.Mainly UK banks Lloyds and HBOS as good examples Bailed out by the UK govt,shareholders took the loss through dilution and the UK govt is still selling shares back into the market and made a profit on the whole deal.They bought low and continue to sell at higher prices .
They were very strange times. Newspapers screaming the end of the world is nigh while I am reading the constant supply of information the companies are supplying to the stock exchange. Times are difficult,loss of liquidity is a problem but we have it under control.We can withstand this for 2 or 3 years and are confident that we are positioned for the inevitable bounce back.Six months later they were back to normal as if it never happened.The biggest shock I have had,it made 1987 look like a walk in the park..
That was the promise in 2008, but the USA government needed the help of the criminal bankers to undo their crimes, which they withheld until they were given a pass
Jamie Dimon was on speed dial from even the Obama WH. The justice dept. should put Jamie Dimon in jail - beside Trump. They are not Americans. I'm tired of their fraud
Janet -- so correct. And BTW, what exactly makes Dimon a Democrat, anyway? Because he contributes to the party and probably contributes equally to GOP? Or is it is registration? All factors, but doesn’t mean much.
Robert brought out several salient points, such as power (and I’ll add, of a certain type) is quiet. Many are forgetting how much we all suffered both directly and indirectly after 2008. This kind of power is quietly herding us into polarized groups of opposing factors in this country. Forcing taxpayers to bailout big banks or any other institution is a racket. These people are experts at manipulating the system they helped design and build over the years to their specification.
Instead of working together to build a more hopeful and prosperous future for us all they are stockpiling wealth for control—over the majority.
Janet--Stay or run...that’s a great question. It brings to mind a PBS documentary on the Louisiana KKK back in the 60’s. the Klan had been reduced to a relatively small bunch until 2 hucksters basically organized and recruited 10,000 people in a relatively short period of time. Their rallies looked like picnics where’s families could get together with the kids and play ball and barbecue. It was all rather bizarre. These people looked so normal until they opened their mouths. And these are the same kind of people who go to the Trump rallies and wave flags and say they’re good Americans but clearly hate most of them.
The point being, this division didn’t just happen because of people like TFG, it happened because of fear of loosing and fear of change. Loosing a way of life and knowing that the world is changing so fast they can’t begin to understand it or even want to. Instead of blaming the obvious perpetrators of their plight they blame all those people in the big cities up North or those “crazies” in CA--there’s always a long list of “other’s to blame. But banks and corporations are too nebulous to lock down and point a finger at. They want their way of life to return, and they want to turn back the clock by force, and they still believe the smoke that politicians blow at them.
I know I have a choice where I live and probably you do to. I’d like to keep working to ensure that our country can continue to exist as a republic. The vast majority of our country I believe want honesty, integrity, fair representation, fair laws and taxes in a government. This, I believe most of us can agree on. But somehow these basics are getting more and more murky to define, and seem more difficult to hold on to. It’s really depressing that so many in our country seem so willing to sacrifice these basics to any huckster and con artist who promises whatever their audience wants to hear.
Agreed. However, it's not easy to move either. It's expensive to move and get a job somewhere else much less start another business and wait until it makes money. I think that plays into this as well. It's complicated. I think they want a simple solution and it's not there. It's not there because jobs have gone to China. We don't have replacements.
I agree we have to do something about climate change. Full stop. Its not easy to change careers and - how to pay for training. I've been there done that.
I know people who work full time and live in campgrounds. People are desperate. The KKK is still in the south. true. I think the Dems need to stop drinking at wall street campaign contributions. We need to stop tearing up new good candidates. Who wants to run for office to be so publicly humiliated? The press is vicious. Just look at Prince Harry. I read his book. I read nothing out of the ordinary about his family. Sounds like another family. LOL. Look at what the press just make up about them. It's sad.
One good policy change - today - is to have a 4 day work week. We all need to show up and talk issues and solutions. Everyone deserves an honest house, food on the table, a job, arts (yes arts), decent clothes. etc. I think the one way to get there is to have a 4 day week so we have time to show up.
Trump is a con and Wall Street + Dimon are just as bad or worse.
Yes, I’ve moved several times even back and forth across country and both North and South. It’s hard and very expensive.
I’ve had 3 different careers so I totally know where you’re coming from. I’ve lost almost everything and I’ve also been in positions where I’ve gained and been prosperous. And I can tell you money’s more fun. However, nothing I’ve experienced has caused me to be purposefully dishonest or deceitful. So, it’s pretty hard for me to identify with these bozos in Congress or the people they truly work for (hint, not us).
It’s all too big a problem for any one or even army of people, but Pres Biden has done a phenomenal job, considering. And I also agree with basic rights as a human being, Including art and music. Hell, I think animals should be given some basic rights, too. Wow, I can just see that reaching the floor of the Congress!
Zel app îs run by Chase bank. If you are mad, delete it! I do not bank with Chase - can't stand them. Move your money to a local bank that might give you some more love! Today.
BILL BLACK - HOW TO ROB A BANK IS TO OWN ONE. The Con - Apple TV.
We do NOT have a housing crisis - we still have an appraisal fraud and liar's loans crisis.
Now the corporations want to control the rest of our "affordable - sub standard - housing".
We should have the living wages to choose our own housing
Will Americans who have "made it" stand up for each other? Well in psychology study after study - people look the other way when someone is getting hurt.
"We should have the living wages to choose our own housing" Amen!
The government gave settlers 40 acres and a mule, to segregate the natives from the colonizers. Now it gives the Jamie Dimons 40 acres and a mule when it wants to segregate the workers from the bank heads. Segregation, transferring wealth from other people's land and lives, still lies at the root of the ills in our country.
True. Margaret Atwood book was built on the premise of the Puritans. That we still have that theocracy foundation mentality. Or, some people do. They turned around and took lands from the Native Americans.
Janet, while I agree with most of what you write, not all affordable housing is sub-standard. My wife and I have been very fortunate to have lived in several in the Denver area that are excellent in all respects. Yes, big corporations own the properties and there are some downsides to that, but on the whole we’re quite happy here.
True, not all. No matter the house price, there can be big troubles later. Usually after the warranty expires...
But shouldn't I have the choice with my own wages to have the house of my choice. That used to be true. I don't recall hearing the phrase "affordable housing" until after the appraisal fraud crisis.
That's my central point - our housing was never under priced. If you would like, watch The Con on Apple Tv.
Bill Black - How to Rob a Bank is to Own One. If Biden wants serious solutions - he would call Bill and beg him to be Treasury Secretary - and then listen to him
We must have a plain vanilla banking system again. A post office banking system for people to regain our power back for democracy.
Not for much longer if Trumps businesses collapse as they should have years ago. Atlantic City casinos anyone ??? Humpty Dumpty is going for a big fall as the childrens nursery rhymn says and nothing will put him back together again if he's in jail !!!!
I still prefer "Gay OLD Pedophiles," as such a large percentage are closeted gay pedophiles AND can no longer remember the last time they were able to get sexually aroused.
Hi, please check the difference between "oxytocin" a natural relationship-binding hormone , and oxycontin, an opioid that can be fatal in specific doses. Otherwise a good comparison.
I'll look for it. I read that the Nordic countries wrote down the mortgages and put the bankers in jail. Here in the US, we just "couldn't figure it out" - snark.
Honestly, it was just another push down the ladder for Americans.
American Banks and Auto Industry were to " Big to Fail" in 2008 why Wage Earners are to small to Count can not even be provided basic Healthcare coverage or living wage . EXEMPT all income tax on the first 40k of Wage earnings and provide Social Healthcare to ALL now ! TAKE CARE OF AMERICANS WHO PRODUCE GOODS AND SERVICES! We.Need a Safety Net for ALL Americans NOT for reckless CEOs who mismanage BIG business. ABUSED WAGE EARNERS SHOULD NOT PICKUP BIG COMPANIES BAILOUTS!
In a rational world, what you say, Brent, would simply make sense. We do not live in a rational world. Jamie Dimon knows it and takes advantage as much as he can of money power. In a rational world, money would be to the economy like blood to a living body: it would flow through every part of the social organism. My personal interpretation is that we have to think beyond capitalism and give the economy a broader perspective than just making money.
The average American has every right to be very angry with both political parties, because we have been constantly abused by the very corporations that financially support both parties.
Nonetheless, the republican party is, by far, the absolute worst of our two party system and if returned to power in 2024, a fascist government is all but assured.
I never thought I would write this, but I genuinely admire Biden's progressivism in some matters; moreover, Biden is a far more progressive president than Clinton and Obama.
Yet, both political parties have allowed U.S. corporations far too much power, and your newsletter today highlights the fact that fascism is actually thriving in the political machinations of corporate America.
Thus, don't waste your vote on a 3rd party candidate. At least not until a 3rd party candidate has a snowball's chance in.. of winning. Then Thus will be the lesser of three evils 😒
Vote Blue and take back the House from the rabid maniacs, bolster the Senate and keep Joe Biden in the White House! Those who cry he is too old forget that he has excellent people in his administration and they are doing the job actually GOVERNING this country - something the rethugs don’t know how to accomplish! Yes, we need our young citizens to come out and VOTE BLUE! Teachers - Teamsters - UAW Workers - Constuction workers Union or not - if you work HARD for your bread the fascist agenda must be stopped COLD - NOW AND IN Nov ‘24!
We can seek progressive legislation to change the Citizen's United decision. Corporations self interest is not in the interest of people. Most have no recognition of the "common good" except for token symbolism. Citizen's opened the floodgates for a whole shift of wealth and power in this country - brought about by the bought and sold corrupt GOP nominated Leonard Leo special friend Supremes. They also hold too much power and with no oversight. They have no ethics and no shame about it. All parts of the system need a fundamental overhaul.
I completely agree with your assessment, Deborah; both of the fascist side as well as of Biden’s progressive actions. Unfortunately I am feeling overwhelmed by all that has gone awry in our system. Does anyone among us have a way out of the downward spiral? I am fearful it will devolve to a Bolshevik-type of revolution. It scares me to death!
Why would you say that? There is not one shred of evidence but the republicans want revenge for impeaching Trump so they are going after President Biden. It is a sham impeachment and they cannot answer basic questions concerning evidence because there is none!! You really need to wake up to what republicans are doing. They will close down the government but still have time to run a sham impeachment trial. It definitely is the Greed Over Party party!!! Do your homework please before you make accusations like this. They are not true!
Thanks Robert for another insightful piece. It shows clearly the uphill battle the Democrats are facing because big money, in this case the banks, don't really support a lot of the Democrat policies wh tend to support the people. It constrains big money in their greed and in the end they will support MAGA, as many already do. Remember , not a single banker was held accountable for the 2008 collapse, also not be the Democrats.... who of course also love their donations...... Another reason to keep Big Business and Big money away from politics and disallow their donations to politicians.
Oh, boy, how much better would "politics" be if only we could overturn the Citizens United decision to take away the corporate campaign donations aka bribes?
And that won't happen in my lifetime so I guess, for me, CU is here to stay! But overturning it sure would make politics more palatable and more interesting, and perhaps more people would pay attention and VOTE. It is pathetic that only 40% (I think) of the population voted in the 2020 election. That's heart-breaking to me because we are so fortunate to have a voice with our vote, despite Republicans' strong desire to disenfranchise far too many of us.
Sandra - I agree, and why don't we have mandatory voting? Or at least mandatory voter registration. Maybe tie it to a modest tax break, like an extra dependent, if one votes. ( I would say votes correctly....) anyway, and here in oregon, we've had vote by mail for decades, and we've never had a problem. is so easy, and drop boxes at libraries, police and fire stations, civic centers, etc. When I taught 8th grade civics, I used the example of poor turn-out as a way to illustrate how a very few people usually make laws that many others are oblivious to, hate, or are in agreement with, but have no clue why they're the law. It got their attention because the law being discussed was a 7 pm curfew for middle schoolers.
While I agree with most of what you write, I don't agree with "a modest tax break" if someone votes (and what does "votes correctly" mean?).
First, I doubt all Republicans would agree to that so I doubt Dems could put forth a bipartisan bill re mandatory voting tied to a modest tax break. And if Dems put forth such a bill, even with some Republican support or co-signers, far right-wing Congressional Republicans would claim very loudly that Democrats are attempting to buy votes. And I have no doubt the legislation, if passed, would be challenged all the way up to SCOTUS by right-wing Republican organizations who want to suppress likely Dem voters that would want to take advantage of a "modest tax break" if they voted. Plus, there are people whose income is so low they are not required to file annual IRS income tax returns.
IMO, a better option to make voter registration easier is automatic voter registration via state drivers' licenses and state IDs for US citizens, with an option to "Opt Out" for whatever personal reason someone might have, such as everyone who gets a state driver's license or state ID is not necessarily a US citizen.
Did that 7 pm curfew law for middle-schoolers pass? Or did it get ash-canned? You taught 8th grade civics...was it in a public school? What an important class to teach to educate young students about the role of government in our lives but especially to stress how lucky we are to have the Constitutional right to vote as U.S. citizens. Quite frankly, I didn't think civics was taught anymore anywhere in this country. Bravo, Paul, and thank you for being a teacher, especially if you are/were a public school teacher!
Sandra, I was using the example of a 7 pm curfew to get their attention. It was only to show them the reality of low voter turnout. yes it was public school, and I was saddened that my teaching peers in social studies didn't cover much if anything about gov't.
as for the tax exemption, it was a tongue in cheek proposal, for all your excellent reasons, somelthing like that wouldn't work.
further on teaching - most public school teachers have too many students, too many disruptions, little or no support from admin, parent wackos that think their kids can do no wrong. these are some of the reasons that teachers only teach the textbooks, which are propaganda pure and simple, and are not designed to foster critical thinking. I'm glad i'm retired, it would be too heartbreaking ot be in the classroom anymore. and yet, without public ed, without a free and critical press, we cannot have a democracy. as the great man said "so sad"
It's an aspiration, obviously not a reality. But I think it's just as important as separation of church & state, which is also unfortunately not a reality & getting less so all the time.
wow, professor reich, that was quite a take-down. i'm curious which part of this was included in your abbreviated response to dimon's greedy lunatic ravings?
i'm also curious ... just kinda putting this question out there to see if anyone (including our public enemy, lunatic dimon) what will wall street do when the entire nation is unhoused, poorly fed, unclean, and incredibly unhealthy?
Oh, I don't think Big Biz will let the entire nation become unhoused, poorly fed, uneducated, etc. They'll need some of us to be their gophers, their mice in cages making their businesses hum, their servants, etc. and those "lucky" enough to have those jobs will accept being underpaid because it'll be better than living under a bridge or in a tent city (see Chicago re Immigrants Hoping for a Better Life) relying on begging to get by. But they won't need many of us because of AI, robotics, etc.
greedy bastards will still need people, just people with different skills, like mechanical repair & maintenance skills, electrical installation, maintenance & repair ... that sort of thing.
mowing their lawns, hauling out their trash, fixing their fences to keep us out, cleaning their pools, painting their mansions; lots of good jobs left, right?!?!?
Oh, I get it! I've heard this before, something about hysterical laughter curves. It's all going to reach the people eventually, just takes a little time to trickle down.
And unable to bail them out AGAIN. It still makes me sick that we bailed them out, we lost our homes, and NOT 1 of those bastards went to jail. Just a light tap on their knuckles. And they don't care if we all are living under a bridge, they will have their drivers take another route.
#Me2 Do you want to boil more - I'm so mad I didn't see his book in 2007. I would have sold everything and ran. Bill Black - he put the 90s bankers in jail. How to Rob a Bank is to Own One. I think this crowd would also like The Con - on Apple TV
Stop the steal! Put tRump in jail (or , at least ban him from office). Stop 'news' media from lying and harmful, misleading propaganda.. Sue them for killing people during Covid. Sue them 'Congress'), for shutting our government down while still enjoying a paycheck as they run roughshod and impeach the best President for the workers in years with no evidence of " high crimes and misdemeanors" at all!
We'll live in campers - it's turning into that now. For additional reading Bill Black - How to Rob a Bank is to Own One. He is all over youtube with lectures and videos etc. The Con - on Apple TV. Surprised they published it.... it's a great series.
Janet Adam's: If you live in the north, you would not be able to afford a camper: you must have heat, fuel ,plumbing, lights (waste disposal) and potable water. Certainly could not afford to buy Apple TV , cable or even books.
It is much colder up there. It gets down to 20s and 30s in the south. Even down to the Keys, it has dipped to the 40s. Explains why there are so many campers in Florida these days.
The way it's going - if we don't get some regulations on bankers - we'll be lucky to have a tent!
One of the most irresponsible industries on the planet, and yes the fish stinks from the head down. Where money is concerned the notion of ‘lite touch regulation’ fails every time. They know it and we know it. Dimon’s leadership (an oxymoron if ever there was one) is about greed, and more greed. The inevitable bailout protects him from any personal consequences. Banking has become a shameful and irresponsible business. We need a nationalized bank for the ‘ordinary citizen’ involving minimal risk and the rest can play around with their merchant bank of choice policed by high levels of regulation and absolutely NO state bailout when greed and hubris come a calling.
In general, there is, as you write, "an abdication of public responsibility to maintain the health of our political-economic system." All of my well-educated friends are upset about Dobbs, book banning, and the republican menace. What are they doing about it? Well. . . . They all say "I vote." Truth be told, when it is time to vote, especially in local elections, even for Congress, they all ask me who to vote for!!!! Other than that, they are going to the opera, having lunch with friends at an outdoor cafe, buying a great scarf on sale online at Macy's and then running up there to exchange it, and planning trips to Europe and cruises to Southeast Asia. It is not that I am against relaxing. But the upshot is, if more Americans do not take care of the hole in our political roof now, it will only get bigger, and the leak will let in more rain and weather and pests. And then it will be too late to do anything. There is no shortage of opportunities to seize responsibility for the health of our political-economic system. Please increase your time allotment to 2 hours a week, 4 hours a week, something. You can write easy postcards to voters in VA at bluewavepostcards.org. You can make phone calls to voters in VA with sisterdistrict.com/volunteer. Wisconsin and Ohio are struggling to make reproductive health part of life; make calls with WisDems or with the ACLU into Ohio at https://go.peoplepower.org/signup/OH-phonebanks-abortion/?source=ppem_122559&t=1&referring_akid=122559.1497972.j40MnL There is no shortage of opportunities to take responsibility. Go to mobilize.us to find one that works for you, and jump in. Please.
I see many people who don't follow issues, just see headlines and they are frequently misleading. I'm amazed at how many people are undecided voters just before the election. They are ignorant about what's happening.
The Apprentice and WWE decided a lot of votes in 2016.
Steveandjanereed, I suppose I could dump my friends. It is not clear how that would energize the tens of millions of Americans who don't vote. As for your suggestion to register voters in my area, I live in New York City, and sometimes I do put efforts into a campaign here. A few years ago I worked hard on campaigns to take over the NYS Senate. Those progressives in Albany are doing great work. Just last week, Gov. Hochul signed the John Lewis Voting Rights Act of New York State! It expands opportunities to register, to vote early, to vote by mail without any reason, and requires schools of every kind (private, public, charter, BOCES) to establish voter registration and pre-registration among students and to ease voter registration for detained New Yorkers. We are not hedging against fascism the way that voters are in Ohio and Wisconsin. So for the time being, my attention is on the mid-West.
steveandjanereed, glad you press your elected officials to register kids to vote. And yes, the mid-west is ready for a big change. I am rooting for you.
If politicians won't have the nerve to stand up to people like Dimon, and if that makes the collapse of the American and international banking system (prophesied by David Wilkerson long ago) inevitable, I wonder what ordinary people can do to protect themselves. Perhaps nothing. The American banking systrem will collapse, and of the rest of the world, then an dictator will arise offering simple solutions that appeal to all just as Hitler did, and we'll have to pledge allegiance to him or lose our heads. That's Armageddon!
Unless, perhaps, Democrats try to educate their politicians to stand up to people like Dimon, pointing to and quoting FDR ...
Campaign finance restrictions actually enforced could be a step in a good direction. Media should give equal time to eligible, non criminal candidates. Big money out of the process of choosing our legislators/leaders. Campaigns should be no longer than 3 months. That is enough time to tell the public what you support. Big money OUT of the elections!
The "Romping Ronald" approach to the 1980s S&L disaster is exactly what is needed. It was needed for Silicon Valley Bank and it is needed now. Banks are legal fictions, bankers are real live individuals. You cannot send a bank to prison. But you can send a banker to prison. If bankers make bad decisions and bankrupt the banks in their care, send the bankers to prison, preferably for fraud. And expose the bankers' assets to lawsuits from the angry shareholders they have ruined. The remaining bankers will be more conservative in their decisions and may even clamor for tighter regulation.
One other comment should be made. The current system is supported through a FDIC tax on banks. It is not funded by American taxpayers. In opposing tighter requirements Dimon may be damaging JP Morgan Chase. You, RR can emphasize that to Dimon next time he phones you.
Bill Black did. He sent almost 300 of them to jail in the 90s. The fraud was so huge there wasn't enough lawyers. The Justice Dept ask for only his 300 worst offenders.....
I am exuding agreement, Professor Reich; fairly oozing agreement. That said, there are questions. Of course, there are questions. For example, the always first question from this reader: what can WE do about this? Second, and I truly mean no disrespect, but Robert Rubin was a HUGE influence in the Clinton White House. I have read reports that he and Bill Clinton had very private conversations about dismantling/ending Social Security! How do you account for the influential, invited, presence of Robert Rubin into a Democratic administration and one that (incorrectly, in my opinion) touted its Democratic bona fides all over the place.
Anyway, thanks for the great column(s) and good thinking!
Let us never forget that it was Rubin, Summers and Greenspan who were hailed by Time Magazine as the "Three Wise Men" in 2000 because they persuaded Clinton not to veto the bill which repealed Glass-Steagall.
Glass-Steagall was the Act signed into law by FDR in 1933, which separated commercial and investment banking. G-S eliminated the "Heads I win, tails you lose" principle of banking, i.e. the idea that banks could reap the rewards of risky investments, but be bailed out by government if those bets went bad. The act had survived just 67 years, and its repeal led directly to the financial meltdown in 2008.
Obviously, bankers hate anything that limits their ability to gamble, and Dimon is no exception. Without regulation of banking, we don't have a workable form of capitalism, as Adam Smith realized in 1776. I would go a step further, unregulated banking is a form of socialism, not for the common man but for the wealthy, for what else is government largesse than government welfare? Think of Dimon as belonging to the new breed of Welfare Queens.
As Gore Vidal said (and also Martin Luther King Jr.) "In America we have socialism for the rich and capitalism for the poor." Yes, please! Bring back Glass-Steagall before we aid and abet another financial catastrophe.
I'm just wondering how many people here voted for Bernie Sanders in the 2016 Democratic Primary. That was our chance to get off this merry-go-round, and you would have thought Bernie was the devil incarnate if you listened to a lot of media. Did I think Hillary Clinton would be any different from her husband when it came to finance? I saw nothing to convince me. As her constituent, I happened to be in a Senate committee hearing when she okayed the high interest on student loans. Maybe the Trump years have waked us up to how easily the financial sector manipulates whoever is in the White House. Biden is way better than most.
For the record, I voted for Senator Bernie Sanders in the 2016 primary. Bless him and bless the people of Vermont who sent him to the United States Senate!
I agree. We knew well in advance of November 2016 that HRC was not going to do well against Trump, and that Bernie would have swept the floor with Trump's combover. Yet the DNC opted for HRC and sandbagged Sanders. Political malpractice.
Ah Obama! From "we are the ones we have been waiting for" to corporate shill. What a disappointment he turned out to be, starting with the appointment of Larry I-don't-believe-in-infrastructure-and-women-are-no-good-at-math Summers as Treasury Secretary.
I know for a fact that Dimon has said the extra cushion has been a good thing for the bank. And why shouldn't there be a hearing-- why can't Katie Porter have another revealing discussion with him-- so revealing of his limitatons? That is, it hadn't occurred to him , it seems, that anyone would try to live and even might have to raise children on the salary of an entry level employee of his bank. And as for what such a person could do to make it work-- he lamely said he'd 'sit down with her.' In the most pitiful way. He clearly, after his answers, was just an old guy pacifying somebody he hoped never to see again.
Money Talks BS Walks. This simply shows means that wall street bankers will use their campaign contributions to reduce the cash on hand requirements so that can optimize the banks profits ; they are fearless in this drive to reduce and relentless in pushing down the capital requirements ( actual cash on hand ) of banking. The purpose of capital requirements is to provide a cushion in the event of sudden un-planned default by the banks customers
No Not normal people but Big Business customers which has in the past trigger the 1929 stock market crash , the 2008 Realestate driven stock market , and the savings and loan Regan adminstration crash. The Wall Streeters are confident that by optimizing the dollars lent out to Big business investments , they have a built-in protection plan TOO BIG TO FAIL SO BIG THAT THE USA GOVERNMENT WILL GIVE THEM MONEY TO RECAPITALIZE THE LENDING OPERATION WHEN THEY BREAK THE BANKS NEXT TIME. It’s a given that optimization of bank money lending brings the most profit to the bankers and their bonuses. We The People will bail them out again. They know that because they fund both political parties and candidates. A good politician is a politician once bought and paid for Stays bought and Payed for and is reliable to support the Next Bailout by the government. Meanwhile Jamie Diamond will get his bonus no mater how badly Ridley perform...
Remember when he said that underpaid young people should get rid of their cell phones if they want to get ahead financially?!!! He has no clue what it's like out here on Main Street, and furthermore, he doesn't care to know what it's like! What a despicable being?
Remember when Katie Porter, wielding her white board, illustrated what an entry level employee of Chase had to payout in terms of usual living expenses...and that at Chase's entry salary would incur $500 net deficit monthly...Dimon retorted that 'one day she could be the CEO'. Clueless is clueless.
Laurie: Yeah, that was a good one to laugh about. Such a simple mind, especially since he was talking about Federal land but blaming California for their wildfires. Do you remember when he allegedly asked if the US could drop a nuclear weapon into the center of a hurricane to stop it? And didn't he suggest "injecting" bleach into our bodies to kill COVID-19? What a nitwit, eh?
Totally agree, Robert.
"They’d like to continue to get the upside gains of their bets while being bailed out by you and me if they get into trouble."
Wall Street, especially the banks, is sick with greed, and nothing will ever be enough for those parasites.
Stress testing of banks should get MUCH MORE SERIOUS. It's been a joke for two decades now
"The five largest Wall Street banks, including JPMorgan, now control more than half of the banking industry’s $15 trillion in assets." Why were bank mergers allowed to occur to create these 5 monster banks? They should be broken up into smaller regional banks, otherwise they will continue to dominate the financial industry and us! (And provide crappy customer service!)
"Why were bank mergers allowed to occur to create these 5 monster banks? "
As you may recall, we had a financial breakdown starting in 2008. Huge losses by the largest players in the sector (Banks, investment banks, insurance companies etc.) threatened a replay of the crash of 1929 and ensuing Great Depression. Merging the failed players with the few that were still relatively strong e.g. JP-Chase, BofA etc. was seized by the government like a lifesaver ring to mitigate the huge cash outflow from the treasury needed to stabilize the situation. Dodd-Frank was supposed to be the concession extracted from then to compensate for the bailout, but it's provisions were steadily watered down or not enforced.
I like my bank: Citizens Bank! They treat me VERY well and always have. It takes 30 seconds to switch the very small amount of money I DO have between my Checkings and Savings.
Credit Unions are the best way to avoid banks. Members own them not the daisy chan of CEOs.
Yes you right about cu. But big monied interests are also working in the background to pass legislation that will seriously curtail cu activity.
My credit union started charging me for the accounts. But, hey the accounts now include benefits that I will never use or already have from other sources. I left them.
Find a credit union that not only does not charge but also pays interest on checking accounts.
Are we to take it then that your singular experience with one branch of one bank, is a clear indication that the banks have learned their lesson and in general are doing a great job and require less regulation now instead of more?
Same here with Patelco Credit Union which offers almost anything a member would like, including all SORTS of online banking, super easy. Credit unions are an overlooked option.
Yes, but the solution is one for individuals and not the broader system. I use a credit union for local business, but it's strictly a local enterprise.
Yes,due to the high leverage that a bank employs they are risky,so need strong regulation. Basel 3 is the standard now.This lifted CET 1 ratios to 13% if I recall correctly,I would need to look at the annual reports.The reports arrive 2 this month,and 2 in December.
As Robert said it does reduce the amount they can lend out .The US system does seem to be a bit out of step with other countries.
Banks here( Australia) pretty much sailed through that period.Four large and strong banks with I think 10 - 11% tier 1 capital ratios then.
Short selling in financial stocks was banned to prevent tumbling share prices,and the govt stepped in with deposit guarantees to prevent a run on the banks .The UK was experiencing runs then so regulations were quickly brought in here to stop that.
They also had raised capital from shareholders through rights issues.As at least 50% of the banks are owned by pension funds it is generally an overnight exercise there.Retail shareholders then wait for the capital raising booklets to be sent out explaining why capital is being raised,and risk that may or may not occur.Nobody has to buy the shares being offered.Then 2 months later get to buy shares at whatever the pension funds bought them at,or slightly below that price.All in all the old "the time to buy is when the blood is flowing freely on the streets".State banks that had been taken over by foreign banks to gain a foothold were quickly sold back to the big 4 banks at loss to the foreign banks.Mainly UK banks Lloyds and HBOS as good examples Bailed out by the UK govt,shareholders took the loss through dilution and the UK govt is still selling shares back into the market and made a profit on the whole deal.They bought low and continue to sell at higher prices .
They were very strange times. Newspapers screaming the end of the world is nigh while I am reading the constant supply of information the companies are supplying to the stock exchange. Times are difficult,loss of liquidity is a problem but we have it under control.We can withstand this for 2 or 3 years and are confident that we are positioned for the inevitable bounce back.Six months later they were back to normal as if it never happened.The biggest shock I have had,it made 1987 look like a walk in the park..
Thanks for the info!
That was the promise in 2008, but the USA government needed the help of the criminal bankers to undo their crimes, which they withheld until they were given a pass
Jamie Dimon was on speed dial from even the Obama WH. The justice dept. should put Jamie Dimon in jail - beside Trump. They are not Americans. I'm tired of their fraud
Obama never punished the bankers for bringing down the economy. He was in a position to do it but he was too much a part of their world.
true. It's never too late.... never. Don't let the bankers gaslight us into thinking "it's too late now.." bah ha.
He needed the criminals' emergency help to undo their crimes, which help they withheld until they were given a pass.
❤️
Without justice, there is no hope
Janet -- so correct. And BTW, what exactly makes Dimon a Democrat, anyway? Because he contributes to the party and probably contributes equally to GOP? Or is it is registration? All factors, but doesn’t mean much.
Robert brought out several salient points, such as power (and I’ll add, of a certain type) is quiet. Many are forgetting how much we all suffered both directly and indirectly after 2008. This kind of power is quietly herding us into polarized groups of opposing factors in this country. Forcing taxpayers to bailout big banks or any other institution is a racket. These people are experts at manipulating the system they helped design and build over the years to their specification.
Instead of working together to build a more hopeful and prosperous future for us all they are stockpiling wealth for control—over the majority.
I think his party registration says Wall Street. What do we do? Ideas? stay or run for it?
Janet--Stay or run...that’s a great question. It brings to mind a PBS documentary on the Louisiana KKK back in the 60’s. the Klan had been reduced to a relatively small bunch until 2 hucksters basically organized and recruited 10,000 people in a relatively short period of time. Their rallies looked like picnics where’s families could get together with the kids and play ball and barbecue. It was all rather bizarre. These people looked so normal until they opened their mouths. And these are the same kind of people who go to the Trump rallies and wave flags and say they’re good Americans but clearly hate most of them.
The point being, this division didn’t just happen because of people like TFG, it happened because of fear of loosing and fear of change. Loosing a way of life and knowing that the world is changing so fast they can’t begin to understand it or even want to. Instead of blaming the obvious perpetrators of their plight they blame all those people in the big cities up North or those “crazies” in CA--there’s always a long list of “other’s to blame. But banks and corporations are too nebulous to lock down and point a finger at. They want their way of life to return, and they want to turn back the clock by force, and they still believe the smoke that politicians blow at them.
I know I have a choice where I live and probably you do to. I’d like to keep working to ensure that our country can continue to exist as a republic. The vast majority of our country I believe want honesty, integrity, fair representation, fair laws and taxes in a government. This, I believe most of us can agree on. But somehow these basics are getting more and more murky to define, and seem more difficult to hold on to. It’s really depressing that so many in our country seem so willing to sacrifice these basics to any huckster and con artist who promises whatever their audience wants to hear.
Agreed. However, it's not easy to move either. It's expensive to move and get a job somewhere else much less start another business and wait until it makes money. I think that plays into this as well. It's complicated. I think they want a simple solution and it's not there. It's not there because jobs have gone to China. We don't have replacements.
I agree we have to do something about climate change. Full stop. Its not easy to change careers and - how to pay for training. I've been there done that.
I know people who work full time and live in campgrounds. People are desperate. The KKK is still in the south. true. I think the Dems need to stop drinking at wall street campaign contributions. We need to stop tearing up new good candidates. Who wants to run for office to be so publicly humiliated? The press is vicious. Just look at Prince Harry. I read his book. I read nothing out of the ordinary about his family. Sounds like another family. LOL. Look at what the press just make up about them. It's sad.
One good policy change - today - is to have a 4 day work week. We all need to show up and talk issues and solutions. Everyone deserves an honest house, food on the table, a job, arts (yes arts), decent clothes. etc. I think the one way to get there is to have a 4 day week so we have time to show up.
Trump is a con and Wall Street + Dimon are just as bad or worse.
Total agree about 4 day work week and Henry, lol.
Yes, I’ve moved several times even back and forth across country and both North and South. It’s hard and very expensive.
I’ve had 3 different careers so I totally know where you’re coming from. I’ve lost almost everything and I’ve also been in positions where I’ve gained and been prosperous. And I can tell you money’s more fun. However, nothing I’ve experienced has caused me to be purposefully dishonest or deceitful. So, it’s pretty hard for me to identify with these bozos in Congress or the people they truly work for (hint, not us).
It’s all too big a problem for any one or even army of people, but Pres Biden has done a phenomenal job, considering. And I also agree with basic rights as a human being, Including art and music. Hell, I think animals should be given some basic rights, too. Wow, I can just see that reaching the floor of the Congress!
I saw Poppy Harlow on CNN interview Dimon and she treated him like a god whose word should never be challenged.
Well said Janet!
Zel app îs run by Chase bank. If you are mad, delete it! I do not bank with Chase - can't stand them. Move your money to a local bank that might give you some more love! Today.
BILL BLACK - HOW TO ROB A BANK IS TO OWN ONE. The Con - Apple TV.
We do NOT have a housing crisis - we still have an appraisal fraud and liar's loans crisis.
Now the corporations want to control the rest of our "affordable - sub standard - housing".
We should have the living wages to choose our own housing
Will Americans who have "made it" stand up for each other? Well in psychology study after study - people look the other way when someone is getting hurt.
Who are we gonna call to fix this - ghostbusters?
"We should have the living wages to choose our own housing" Amen!
The government gave settlers 40 acres and a mule, to segregate the natives from the colonizers. Now it gives the Jamie Dimons 40 acres and a mule when it wants to segregate the workers from the bank heads. Segregation, transferring wealth from other people's land and lives, still lies at the root of the ills in our country.
True. Margaret Atwood book was built on the premise of the Puritans. That we still have that theocracy foundation mentality. Or, some people do. They turned around and took lands from the Native Americans.
We have to show up for democracy.
NO MULES WERE INVOLVED ! The 40 acres ? The US Govt. STOLE IT FAIR AND SQUARE, then gave it away to those that would continue support. WAKE UP !
Janet, while I agree with most of what you write, not all affordable housing is sub-standard. My wife and I have been very fortunate to have lived in several in the Denver area that are excellent in all respects. Yes, big corporations own the properties and there are some downsides to that, but on the whole we’re quite happy here.
True, not all. No matter the house price, there can be big troubles later. Usually after the warranty expires...
But shouldn't I have the choice with my own wages to have the house of my choice. That used to be true. I don't recall hearing the phrase "affordable housing" until after the appraisal fraud crisis.
That's my central point - our housing was never under priced. If you would like, watch The Con on Apple Tv.
The Zel app is run in part by Chase bank - if you are mad . Delete it.
It's spelled Zelle.
darn auto corrrrrt.
Bill Black - How to Rob a Bank is to Own One. If Biden wants serious solutions - he would call Bill and beg him to be Treasury Secretary - and then listen to him
We must have a plain vanilla banking system again. A post office banking system for people to regain our power back for democracy.
https://en.wikipedia.org/wiki/William_K._Black
Thanks! :) I've watched his lectures and interview all over YouTube. Nothing boils my blood like this morning's post from Dr. Reich.
https://www.youtube.com/watch?v=n4axBfNjnZQ
Thank you - excellent link. I am hoping Dr. Reich will interview him. That would be a great conversation.
My Rep Ann Wagner MO 2nd CD bought and paid for by the financial industry.
Not for much longer if Trumps businesses collapse as they should have years ago. Atlantic City casinos anyone ??? Humpty Dumpty is going for a big fall as the childrens nursery rhymn says and nothing will put him back together again if he's in jail !!!!
Fingers crossed, Roger.
Love the Greed Over People! Apt name for the thugs.
I still prefer "Gay OLD Pedophiles," as such a large percentage are closeted gay pedophiles AND can no longer remember the last time they were able to get sexually aroused.
Daniel, 🤣
Crass I know, but they brought WAR to our American citizens!
Hi, please check the difference between "oxytocin" a natural relationship-binding hormone , and oxycontin, an opioid that can be fatal in specific doses. Otherwise a good comparison.
Try Bill Black - How to Rob a Bank is to Own One. He helped put the bankers in jail in the 90s.
I'll look for it. I read that the Nordic countries wrote down the mortgages and put the bankers in jail. Here in the US, we just "couldn't figure it out" - snark.
Honestly, it was just another push down the ladder for Americans.
American Banks and Auto Industry were to " Big to Fail" in 2008 why Wage Earners are to small to Count can not even be provided basic Healthcare coverage or living wage . EXEMPT all income tax on the first 40k of Wage earnings and provide Social Healthcare to ALL now ! TAKE CARE OF AMERICANS WHO PRODUCE GOODS AND SERVICES! We.Need a Safety Net for ALL Americans NOT for reckless CEOs who mismanage BIG business. ABUSED WAGE EARNERS SHOULD NOT PICKUP BIG COMPANIES BAILOUTS!
In a rational world, what you say, Brent, would simply make sense. We do not live in a rational world. Jamie Dimon knows it and takes advantage as much as he can of money power. In a rational world, money would be to the economy like blood to a living body: it would flow through every part of the social organism. My personal interpretation is that we have to think beyond capitalism and give the economy a broader perspective than just making money.
Gee, I'm glad you said that because I completely agree! Well done!
Read - Bill Black How to Rob a Bank is to Own One and The Con on Apple TV. We do not have an affordable housing crisis - it's still appraisal fraud
The average American has every right to be very angry with both political parties, because we have been constantly abused by the very corporations that financially support both parties.
Nonetheless, the republican party is, by far, the absolute worst of our two party system and if returned to power in 2024, a fascist government is all but assured.
I never thought I would write this, but I genuinely admire Biden's progressivism in some matters; moreover, Biden is a far more progressive president than Clinton and Obama.
Yet, both political parties have allowed U.S. corporations far too much power, and your newsletter today highlights the fact that fascism is actually thriving in the political machinations of corporate America.
The lesser of two evils is still less evil. It was ever thus.
Thus, don't waste your vote on a 3rd party candidate. At least not until a 3rd party candidate has a snowball's chance in.. of winning. Then Thus will be the lesser of three evils 😒
But you still have to deal with reality. Biden is very limited in what he can do.
Vote Blue and take back the House from the rabid maniacs, bolster the Senate and keep Joe Biden in the White House! Those who cry he is too old forget that he has excellent people in his administration and they are doing the job actually GOVERNING this country - something the rethugs don’t know how to accomplish! Yes, we need our young citizens to come out and VOTE BLUE! Teachers - Teamsters - UAW Workers - Constuction workers Union or not - if you work HARD for your bread the fascist agenda must be stopped COLD - NOW AND IN Nov ‘24!
So VOTE BLUE no matter WHO, and help Biden.
Haven't heard trump lately, have you? He's ready to fight WWII. He slurs his speech.
We can seek progressive legislation to change the Citizen's United decision. Corporations self interest is not in the interest of people. Most have no recognition of the "common good" except for token symbolism. Citizen's opened the floodgates for a whole shift of wealth and power in this country - brought about by the bought and sold corrupt GOP nominated Leonard Leo special friend Supremes. They also hold too much power and with no oversight. They have no ethics and no shame about it. All parts of the system need a fundamental overhaul.
I agree.
We need serious campaign reforms to get rid of these massive campaign contributions.
Its just legalized bribery.
I completely agree with your assessment, Deborah; both of the fascist side as well as of Biden’s progressive actions. Unfortunately I am feeling overwhelmed by all that has gone awry in our system. Does anyone among us have a way out of the downward spiral? I am fearful it will devolve to a Bolshevik-type of revolution. It scares me to death!
It scares me, too, as it should anyone who cares about the survival of our democracy.
Unfortunately I'm afraid that no one individual can overcome the vast and corrupted forces feverishly arrayed against us.
Our current system of governance must be cleansed from the roots, and it will take a "revolution" to do so.
Why would you say that? There is not one shred of evidence but the republicans want revenge for impeaching Trump so they are going after President Biden. It is a sham impeachment and they cannot answer basic questions concerning evidence because there is none!! You really need to wake up to what republicans are doing. They will close down the government but still have time to run a sham impeachment trial. It definitely is the Greed Over Party party!!! Do your homework please before you make accusations like this. They are not true!
BS
I have long said that Jamie Dimon is a waste of carbon. He’s a greedy, conniving, slimy empty suit...and those are his good qualities.
Watch The Con on Apple TV. He has other "qualities" to show off too!
Thanks Robert for another insightful piece. It shows clearly the uphill battle the Democrats are facing because big money, in this case the banks, don't really support a lot of the Democrat policies wh tend to support the people. It constrains big money in their greed and in the end they will support MAGA, as many already do. Remember , not a single banker was held accountable for the 2008 collapse, also not be the Democrats.... who of course also love their donations...... Another reason to keep Big Business and Big money away from politics and disallow their donations to politicians.
Oh, boy, how much better would "politics" be if only we could overturn the Citizens United decision to take away the corporate campaign donations aka bribes?
I'll believe a Corporation is a "person" when the Great State of Tejas EXECUTES one.
I’ve heard that one before but no truer words spoken Louis!
If you want Citizens United overturned, the Supreme Court must be brought to heel for their corruption.
And that won't happen in my lifetime so I guess, for me, CU is here to stay! But overturning it sure would make politics more palatable and more interesting, and perhaps more people would pay attention and VOTE. It is pathetic that only 40% (I think) of the population voted in the 2020 election. That's heart-breaking to me because we are so fortunate to have a voice with our vote, despite Republicans' strong desire to disenfranchise far too many of us.
Sandra - I agree, and why don't we have mandatory voting? Or at least mandatory voter registration. Maybe tie it to a modest tax break, like an extra dependent, if one votes. ( I would say votes correctly....) anyway, and here in oregon, we've had vote by mail for decades, and we've never had a problem. is so easy, and drop boxes at libraries, police and fire stations, civic centers, etc. When I taught 8th grade civics, I used the example of poor turn-out as a way to illustrate how a very few people usually make laws that many others are oblivious to, hate, or are in agreement with, but have no clue why they're the law. It got their attention because the law being discussed was a 7 pm curfew for middle schoolers.
While I agree with most of what you write, I don't agree with "a modest tax break" if someone votes (and what does "votes correctly" mean?).
First, I doubt all Republicans would agree to that so I doubt Dems could put forth a bipartisan bill re mandatory voting tied to a modest tax break. And if Dems put forth such a bill, even with some Republican support or co-signers, far right-wing Congressional Republicans would claim very loudly that Democrats are attempting to buy votes. And I have no doubt the legislation, if passed, would be challenged all the way up to SCOTUS by right-wing Republican organizations who want to suppress likely Dem voters that would want to take advantage of a "modest tax break" if they voted. Plus, there are people whose income is so low they are not required to file annual IRS income tax returns.
IMO, a better option to make voter registration easier is automatic voter registration via state drivers' licenses and state IDs for US citizens, with an option to "Opt Out" for whatever personal reason someone might have, such as everyone who gets a state driver's license or state ID is not necessarily a US citizen.
Did that 7 pm curfew law for middle-schoolers pass? Or did it get ash-canned? You taught 8th grade civics...was it in a public school? What an important class to teach to educate young students about the role of government in our lives but especially to stress how lucky we are to have the Constitutional right to vote as U.S. citizens. Quite frankly, I didn't think civics was taught anymore anywhere in this country. Bravo, Paul, and thank you for being a teacher, especially if you are/were a public school teacher!
Sandra, I was using the example of a 7 pm curfew to get their attention. It was only to show them the reality of low voter turnout. yes it was public school, and I was saddened that my teaching peers in social studies didn't cover much if anything about gov't.
as for the tax exemption, it was a tongue in cheek proposal, for all your excellent reasons, somelthing like that wouldn't work.
further on teaching - most public school teachers have too many students, too many disruptions, little or no support from admin, parent wackos that think their kids can do no wrong. these are some of the reasons that teachers only teach the textbooks, which are propaganda pure and simple, and are not designed to foster critical thinking. I'm glad i'm retired, it would be too heartbreaking ot be in the classroom anymore. and yet, without public ed, without a free and critical press, we cannot have a democracy. as the great man said "so sad"
Sandra, well and simply said. If I could like you comment a million times I would. Thank you.
Chris, How very kind of you! That's the nicest response I have ever received! Thank YOU!
Separation of corporation & state!
It's an aspiration, obviously not a reality. But I think it's just as important as separation of church & state, which is also unfortunately not a reality & getting less so all the time.
wow, professor reich, that was quite a take-down. i'm curious which part of this was included in your abbreviated response to dimon's greedy lunatic ravings?
i'm also curious ... just kinda putting this question out there to see if anyone (including our public enemy, lunatic dimon) what will wall street do when the entire nation is unhoused, poorly fed, unclean, and incredibly unhealthy?
Oh, I don't think Big Biz will let the entire nation become unhoused, poorly fed, uneducated, etc. They'll need some of us to be their gophers, their mice in cages making their businesses hum, their servants, etc. and those "lucky" enough to have those jobs will accept being underpaid because it'll be better than living under a bridge or in a tent city (see Chicago re Immigrants Hoping for a Better Life) relying on begging to get by. But they won't need many of us because of AI, robotics, etc.
greedy bastards will still need people, just people with different skills, like mechanical repair & maintenance skills, electrical installation, maintenance & repair ... that sort of thing.
mowing their lawns, hauling out their trash, fixing their fences to keep us out, cleaning their pools, painting their mansions; lots of good jobs left, right?!?!?
Oh, I get it! I've heard this before, something about hysterical laughter curves. It's all going to reach the people eventually, just takes a little time to trickle down.
overseas markets, etc
And unable to bail them out AGAIN. It still makes me sick that we bailed them out, we lost our homes, and NOT 1 of those bastards went to jail. Just a light tap on their knuckles. And they don't care if we all are living under a bridge, they will have their drivers take another route.
#Me2 Do you want to boil more - I'm so mad I didn't see his book in 2007. I would have sold everything and ran. Bill Black - he put the 90s bankers in jail. How to Rob a Bank is to Own One. I think this crowd would also like The Con - on Apple TV
"Soylent Green is people!"
DZK ; Ick! : Time to be more vegetarian. If we must eat soylent green, let it be the 'high end' type : EAT. THE. RICH.!
Stop the steal! Put tRump in jail (or , at least ban him from office). Stop 'news' media from lying and harmful, misleading propaganda.. Sue them for killing people during Covid. Sue them 'Congress'), for shutting our government down while still enjoying a paycheck as they run roughshod and impeach the best President for the workers in years with no evidence of " high crimes and misdemeanors" at all!
GrrlScientist, Exploit them! Diaster capitalism, they'll be joyful.
We'll live in campers - it's turning into that now. For additional reading Bill Black - How to Rob a Bank is to Own One. He is all over youtube with lectures and videos etc. The Con - on Apple TV. Surprised they published it.... it's a great series.
Janet Adam's: If you live in the north, you would not be able to afford a camper: you must have heat, fuel ,plumbing, lights (waste disposal) and potable water. Certainly could not afford to buy Apple TV , cable or even books.
It is much colder up there. It gets down to 20s and 30s in the south. Even down to the Keys, it has dipped to the 40s. Explains why there are so many campers in Florida these days.
The way it's going - if we don't get some regulations on bankers - we'll be lucky to have a tent!
One of the most irresponsible industries on the planet, and yes the fish stinks from the head down. Where money is concerned the notion of ‘lite touch regulation’ fails every time. They know it and we know it. Dimon’s leadership (an oxymoron if ever there was one) is about greed, and more greed. The inevitable bailout protects him from any personal consequences. Banking has become a shameful and irresponsible business. We need a nationalized bank for the ‘ordinary citizen’ involving minimal risk and the rest can play around with their merchant bank of choice policed by high levels of regulation and absolutely NO state bailout when greed and hubris come a calling.
In general, there is, as you write, "an abdication of public responsibility to maintain the health of our political-economic system." All of my well-educated friends are upset about Dobbs, book banning, and the republican menace. What are they doing about it? Well. . . . They all say "I vote." Truth be told, when it is time to vote, especially in local elections, even for Congress, they all ask me who to vote for!!!! Other than that, they are going to the opera, having lunch with friends at an outdoor cafe, buying a great scarf on sale online at Macy's and then running up there to exchange it, and planning trips to Europe and cruises to Southeast Asia. It is not that I am against relaxing. But the upshot is, if more Americans do not take care of the hole in our political roof now, it will only get bigger, and the leak will let in more rain and weather and pests. And then it will be too late to do anything. There is no shortage of opportunities to seize responsibility for the health of our political-economic system. Please increase your time allotment to 2 hours a week, 4 hours a week, something. You can write easy postcards to voters in VA at bluewavepostcards.org. You can make phone calls to voters in VA with sisterdistrict.com/volunteer. Wisconsin and Ohio are struggling to make reproductive health part of life; make calls with WisDems or with the ACLU into Ohio at https://go.peoplepower.org/signup/OH-phonebanks-abortion/?source=ppem_122559&t=1&referring_akid=122559.1497972.j40MnL There is no shortage of opportunities to take responsibility. Go to mobilize.us to find one that works for you, and jump in. Please.
I see many people who don't follow issues, just see headlines and they are frequently misleading. I'm amazed at how many people are undecided voters just before the election. They are ignorant about what's happening.
The Apprentice and WWE decided a lot of votes in 2016.
Donna tell your friends or get new ones. They are on the front line even if they don't know it, and they are risking it all by not paying attention.
Register voters in your area. Contact your board of election for your county. or LWV.
Steveandjanereed, I suppose I could dump my friends. It is not clear how that would energize the tens of millions of Americans who don't vote. As for your suggestion to register voters in my area, I live in New York City, and sometimes I do put efforts into a campaign here. A few years ago I worked hard on campaigns to take over the NYS Senate. Those progressives in Albany are doing great work. Just last week, Gov. Hochul signed the John Lewis Voting Rights Act of New York State! It expands opportunities to register, to vote early, to vote by mail without any reason, and requires schools of every kind (private, public, charter, BOCES) to establish voter registration and pre-registration among students and to ease voter registration for detained New Yorkers. We are not hedging against fascism the way that voters are in Ohio and Wisconsin. So for the time being, my attention is on the mid-West.
Yes I have recently spoken to 2 of my reps about passing a law for schools to do VR in Missouri. You are right mid-west needs attention.
steveandjanereed, glad you press your elected officials to register kids to vote. And yes, the mid-west is ready for a big change. I am rooting for you.
If politicians won't have the nerve to stand up to people like Dimon, and if that makes the collapse of the American and international banking system (prophesied by David Wilkerson long ago) inevitable, I wonder what ordinary people can do to protect themselves. Perhaps nothing. The American banking systrem will collapse, and of the rest of the world, then an dictator will arise offering simple solutions that appeal to all just as Hitler did, and we'll have to pledge allegiance to him or lose our heads. That's Armageddon!
Unless, perhaps, Democrats try to educate their politicians to stand up to people like Dimon, pointing to and quoting FDR ...
As for the banks : join a credit union!?! Push for the post office to feature banking?!.? Or a co-op bank.
Campaign finance restrictions actually enforced could be a step in a good direction. Media should give equal time to eligible, non criminal candidates. Big money out of the process of choosing our legislators/leaders. Campaigns should be no longer than 3 months. That is enough time to tell the public what you support. Big money OUT of the elections!
They know they will be bailed out, so it's a no risk situation for them.
Prerequisite is assuring the right to vote.
Simultaneously , public education. Without an informed public, motivated to improve everyone's lives, change cannot happen.
The "Romping Ronald" approach to the 1980s S&L disaster is exactly what is needed. It was needed for Silicon Valley Bank and it is needed now. Banks are legal fictions, bankers are real live individuals. You cannot send a bank to prison. But you can send a banker to prison. If bankers make bad decisions and bankrupt the banks in their care, send the bankers to prison, preferably for fraud. And expose the bankers' assets to lawsuits from the angry shareholders they have ruined. The remaining bankers will be more conservative in their decisions and may even clamor for tighter regulation.
One other comment should be made. The current system is supported through a FDIC tax on banks. It is not funded by American taxpayers. In opposing tighter requirements Dimon may be damaging JP Morgan Chase. You, RR can emphasize that to Dimon next time he phones you.
Bill Black did. He sent almost 300 of them to jail in the 90s. The fraud was so huge there wasn't enough lawyers. The Justice Dept ask for only his 300 worst offenders.....
I am exuding agreement, Professor Reich; fairly oozing agreement. That said, there are questions. Of course, there are questions. For example, the always first question from this reader: what can WE do about this? Second, and I truly mean no disrespect, but Robert Rubin was a HUGE influence in the Clinton White House. I have read reports that he and Bill Clinton had very private conversations about dismantling/ending Social Security! How do you account for the influential, invited, presence of Robert Rubin into a Democratic administration and one that (incorrectly, in my opinion) touted its Democratic bona fides all over the place.
Anyway, thanks for the great column(s) and good thinking!
Let us never forget that it was Rubin, Summers and Greenspan who were hailed by Time Magazine as the "Three Wise Men" in 2000 because they persuaded Clinton not to veto the bill which repealed Glass-Steagall.
Glass-Steagall was the Act signed into law by FDR in 1933, which separated commercial and investment banking. G-S eliminated the "Heads I win, tails you lose" principle of banking, i.e. the idea that banks could reap the rewards of risky investments, but be bailed out by government if those bets went bad. The act had survived just 67 years, and its repeal led directly to the financial meltdown in 2008.
Obviously, bankers hate anything that limits their ability to gamble, and Dimon is no exception. Without regulation of banking, we don't have a workable form of capitalism, as Adam Smith realized in 1776. I would go a step further, unregulated banking is a form of socialism, not for the common man but for the wealthy, for what else is government largesse than government welfare? Think of Dimon as belonging to the new breed of Welfare Queens.
As Gore Vidal said (and also Martin Luther King Jr.) "In America we have socialism for the rich and capitalism for the poor." Yes, please! Bring back Glass-Steagall before we aid and abet another financial catastrophe.
Yes indeed! We socialize risk and privatize profits. The best economic system is well regulated capitalism but, the worst is unregulated capitalism
I didn't know that. Good old Gore Vidal.
"Think of Dimon as belonging to the new breed of Welfare Queens."
That statement is perfection!
I'm just wondering how many people here voted for Bernie Sanders in the 2016 Democratic Primary. That was our chance to get off this merry-go-round, and you would have thought Bernie was the devil incarnate if you listened to a lot of media. Did I think Hillary Clinton would be any different from her husband when it came to finance? I saw nothing to convince me. As her constituent, I happened to be in a Senate committee hearing when she okayed the high interest on student loans. Maybe the Trump years have waked us up to how easily the financial sector manipulates whoever is in the White House. Biden is way better than most.
For the record, I voted for Senator Bernie Sanders in the 2016 primary. Bless him and bless the people of Vermont who sent him to the United States Senate!
I agree. We knew well in advance of November 2016 that HRC was not going to do well against Trump, and that Bernie would have swept the floor with Trump's combover. Yet the DNC opted for HRC and sandbagged Sanders. Political malpractice.
Jamie Dimon is on the White House speed dial. He was under Obama Admin. I steamed when I saw him in photos meeting with him at the Oval Office
Ah Obama! From "we are the ones we have been waiting for" to corporate shill. What a disappointment he turned out to be, starting with the appointment of Larry I-don't-believe-in-infrastructure-and-women-are-no-good-at-math Summers as Treasury Secretary.
He's not the only Democrat who caved to Summers.
Please keep beating this drum, Mr. Reich.
Jamie Dimon is grossly overpaid. No one is worth $34.5 million, making 370 times more than average pay at J. P. Morgan.
I know for a fact that Dimon has said the extra cushion has been a good thing for the bank. And why shouldn't there be a hearing-- why can't Katie Porter have another revealing discussion with him-- so revealing of his limitatons? That is, it hadn't occurred to him , it seems, that anyone would try to live and even might have to raise children on the salary of an entry level employee of his bank. And as for what such a person could do to make it work-- he lamely said he'd 'sit down with her.' In the most pitiful way. He clearly, after his answers, was just an old guy pacifying somebody he hoped never to see again.
Money Talks BS Walks. This simply shows means that wall street bankers will use their campaign contributions to reduce the cash on hand requirements so that can optimize the banks profits ; they are fearless in this drive to reduce and relentless in pushing down the capital requirements ( actual cash on hand ) of banking. The purpose of capital requirements is to provide a cushion in the event of sudden un-planned default by the banks customers
No Not normal people but Big Business customers which has in the past trigger the 1929 stock market crash , the 2008 Realestate driven stock market , and the savings and loan Regan adminstration crash. The Wall Streeters are confident that by optimizing the dollars lent out to Big business investments , they have a built-in protection plan TOO BIG TO FAIL SO BIG THAT THE USA GOVERNMENT WILL GIVE THEM MONEY TO RECAPITALIZE THE LENDING OPERATION WHEN THEY BREAK THE BANKS NEXT TIME. It’s a given that optimization of bank money lending brings the most profit to the bankers and their bonuses. We The People will bail them out again. They know that because they fund both political parties and candidates. A good politician is a politician once bought and paid for Stays bought and Payed for and is reliable to support the Next Bailout by the government. Meanwhile Jamie Diamond will get his bonus no mater how badly Ridley perform...
No need to travel all the way to the Congo for the bloody diamond;
Easy access can be had on Wall St from the bloody hands of Jamie Dimon.
Remember when he said that underpaid young people should get rid of their cell phones if they want to get ahead financially?!!! He has no clue what it's like out here on Main Street, and furthermore, he doesn't care to know what it's like! What a despicable being?
Remember when Katie Porter, wielding her white board, illustrated what an entry level employee of Chase had to payout in terms of usual living expenses...and that at Chase's entry salary would incur $500 net deficit monthly...Dimon retorted that 'one day she could be the CEO'. Clueless is clueless.
That was an awesome cross exam wasn't it? He does have a clue. It's worse. He doesn't care - doesn't have too.
Katie Porter would not use her expertise to screw her fellow voters.
And bullshit rolls down the hill!
Sandra Olivia M-S : like tfg suggested to prevent wildfires in California : Just go in there and rake away the forest floor! Hahahahaha!
Laurie: Yeah, that was a good one to laugh about. Such a simple mind, especially since he was talking about Federal land but blaming California for their wildfires. Do you remember when he allegedly asked if the US could drop a nuclear weapon into the center of a hurricane to stop it? And didn't he suggest "injecting" bleach into our bodies to kill COVID-19? What a nitwit, eh?
Ridicule when and where appropriate.
Hand wringing worry won't cut it
Robert Colacurcio : Who would want those 'diamonds'?
No way. I buy zirconium?