No Worry, JP Morgan On Guard

Jamie Dimon, head of J.P.Morgan testified before Congress urging an end to any government regulations over financial traders. When asked by recent losses, Mr. Dimon pointed out such mistakes were made by traders who did not understand the risks in their financial programs. He vigorously opposed the Dodd-Frank bill which contains the notorious Volker Rule that outlaws certain types of risk taking by traders. He termed the rule to be unnecessary.

He was asked about the recent J.P. Morgan financial problem which will cost the company about $5 billion. On first hearing about the problem in April he termed the entire matter a “tempest in a teapot.” However, he explained to Congress the entire matter arose because he was “misinformed.” Dimon insisted the main financial problem today is “rising interest rates.”

I guess there are some who actually believe losing $5 billion is a big issue. To Dimon that is like me spilling my cup of tea. Perhaps, I am misinformed, but I thought interest rates today were at the  lowest level in thirty years.