Monday, October 21, 2013
Jamie Dimon Complains More, As JPMorgan Chase Losses Eclipse $30 Billion
http://www.huffingtonpost.com/mark-gongloff/jamie-dimon-jpmorgan-chase_b_1533126.html. Due 28 Oct 2013. What did JPMorgan do wrong? How much are their current calculated losses and how big of a fine will they have to pay? What is the Volcker Rule and do you think it is a good idea?? How much government control is necessary in a free market economy?
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JPMorgan's failure to have tighter constraints on regulation caused their total loss of $30 billion dollars, that seems to continue to grow. It began with an initial $2 billion trading loss, however if one takes into account the 19 percent drop of the bank's stock price, the loss sums up to about $30 billion. Volcker rule was created to prohibit banks that have federally insured customer deposits, from being able to use billions of dollars to use for gambling. I think this rule is a good attempt at probably prevent losses by these banks, if only it was put into effect. Customers are trusting that their money is safe in these banks, not merely to be lost in gambling games. Any market without government runs rampant with corruption, so in a free market I think that there should be some form of government control to regulate actions. The people whose money is federally protected needs to be protected, which does not necessarily involve total government control.
ReplyDeleteJP Morgan's biggest mistake was that he failed to more tightly regulate his bank, thus causing millions of dollars to be lost. The article states that, "An initial $2 billion trading loss has likely resulted in a total loss of more than $30 billion, when you include a 19 percent drop in the bank's stock price", and that this is the reason why Chase is losing money. Chase will have to pay 6 million due to the trading loss. The Volker rule "would prohibit banks with federally insured customer deposits from being able to blow billions of dollars on stupid market gambles". I think this rule is a good idea to enforce because people's money would not be blown on gambling when they think their money is safe. Some government control is needed in a free market economy because if not, things would go too far out of hand. For example, some companies would have monopolies over some goods, and other companies would attempt to sell items made with cheaper and more dangerous material. Government intervention is needed to keep the American public safe and to not let some companies get out of hand.
ReplyDelete-Anita Pizzirani (Pizza)
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The CEO of JPMorgan complained about Wall Street's lax regulation, while the Wall Street Journal reported that a top risk-management officer at JPMorgan apparently had a spotty track record of risk-management. The total loss sums up to $30 billion when you include a 19 percent drop in the bank's stock price. Volcker Rule would prohibit banks with federally insured customer deposits from being able to blow billions of dollars on stupid market gambles. In my opinion, Volcker Rule is a brilliant idea. The U.S. government should totally protect investors' money and should prohibit banks from risking the investors' money.
ReplyDeleteJPMorgan failed to regulate its market gambles causing it have a loss in more than 30 billion dollars. The Volcker Rule's purpose, which JPMorgan complained about, would prohibit banks with federally insured customer deposits from being able to blow billions of dollars on stupid market gambles. I think that rule is a good idea because it puts less power into the big bank's hands and more protection for its investors. In a free market economy, there should be some government control, but not total. There should be enough that investors would not loose everything they have because their bank participates in stupid, risky market wagers.
ReplyDeleteJPMorgan has failed to tighten constraints on regulation, which has caused them a total loss of $30 billion and growing. Though their initial trading loss was $2 billion, taking into account the 19% drop of the bank's stock price brings us to the $30 billion total. The Volcker Rule prohibits banks from using federally insured customer deposits for gambling, which is a great idea considering customers no longer feel as if their money is safe in banks, and if they did, they might just invest more. There should be a little government control in a free market economy, because with too much, it is not necessarily a free market anymore and with too little, there is way too much corruption.
ReplyDeleteJPMorgans mistake was hiring the top risk-management officer at JPMorgan apparently had a spotty track record of risk-management. Their current calculated losses is calculated to be about 2 billion dollars. But the trading loss a lone has increased to 6 billion when the 19 percent drop in the banks stock happened. The Volcker rule would prohibit banks with federally insured customer deposits from being able to blow billions of dollars on stupid market gambles. I believe that the rule is a great thing because investors won't lose their money on silly gambles. In a free market the government should have control on how their Bonds or investor Bonds are spent, they should protect the money of the investors instead of spending it.
ReplyDeleteThe failure of JPMorgan to regulate their gambles in the market economy has resulted in the loss of 30 billion dollars. Wall Street Journal has reported the spotty risk-management at JPMorgan. Although their initial trading loss was only $2 billion, a 19% drop in the price of their stock has brought the total to a staggering $30 billion. The Volcker Rules purpose is to prohibit banks with federally insured customer deposits from being able to waste billions of dollars on high risk market gambles. I think this policy is a good one for it minimizes the money lost by common stockholders by cutting down market gambling. There is no perfect answer to the amount of government control needed in a government. There are certainly situations where more control is needed and others were no government control is needed at all. In investment banks like JPMorgan I believe there should be a high amount of government control.
ReplyDeleteJPMorgan failed to hold together and regulate his bank's losses resulting from lax regulation. This resulted in a loss of more than $30 billion.Their current calculated losses is about 2 billion dollars. The trading loss might balloon to more than $6 billion. The Volcker Rule stops the banks from using the federally insured customer deposits to gamble on the market. This rule is great considering how the customers views of banks are starting to shift. In a free market economy, there should be little to no government control. With little government control it will result in less chaos and would be a "free" economy.
ReplyDeleteAs a result of JPMorgan's failure to implement stricter regulations, it has reached a total loss of $30 billion--a number that is growing by the day. JPMorgan first lost $2 billion in trading. Add that number to the 19% drop in the bank's stock price, and the trading loss alone amounts to a $6 billion loss in trading. The Volcker Rule prohibits banks with federally insured customer deposits from being able to blow billions of dollars on pointless market gambles. I think this rule is reasonable and would be a good attempt, if one were to be made, to hinder the chances of a bank (like JPMorgan) from losing large chunks of their money. Any institution without an ultimate, authoritative figure will not achieve much before it trips and falls over corruption. This being said, moderate government control is necessary in a free market. The government should set rules and regulations for the market, without impeding too much on companies' independent actions and decisions.
ReplyDeleteJPMorgan did a couple of things wrong. Hiring that top risk-management officer was wrong and the shortcoming in the rigid restriction on regulation was wrong. Huffingtonpost states that an initial $2 billion trading loss has likely resulted in a total loss of more than $30 billion, when you include a 19 percent drop in the bank's stock price. By itself, the trading loss alone might balloon to more than $6 billion, according to one estimate. The Volcker rule separates investment banking, private equity and proprietary trading sections of financial institutions from their consumer lending arms. Banks basically aren't allowed to simultaneously enter into an advisory and creditor role with clients. I believe it's a good idea because of the simple fact that most people trust banks anyway. I don't really believe in having a free market economy because the government kind of plays a parental role in our lives. The government plays the role of control that parents play in households. In a free market economy, it's hard to say how much control the government would be permitted.
ReplyDeleteBecause J.P. Morgan failed to uphold tight regulations, they had a loss of over $30 billion. The tremendous loss began with a $2 billion trading loss that continued to spiral downward. If you take into account the 19 percent drop of the bank's stock price, the loss sums up to about $30 billion. Volcker rule was created to prohibit banks that have federally insured customer deposits, from being able to use billions of dollars to use for gambling. I completely agree with this rule. It is a viscous system we live in where businesses and money-makers can abuse their rights to make profit of those less fortunate. This rule is vital to the productivity and egalitarianism we so desire. In a free market economy, there is no government intervention, survival of the fittest. Eventually, however, the fittest kill off whatever's left. To limit this, big businesses and banks should be closely monitored for unlawful acts.
ReplyDeleteJPMorgan's mistake of not having a stronger restriction policy led to the loss of more than $30 billion dollars. It started with an initial trading loss of $2 billion dollars but when you include the 19% drop in the price of bank stocks, then it would total to be around $30 billion. The Volcker Rule would "prohibit banks with federally insured customer deposits from being able to blow billions of dollars in bad market gambles," This is a good idea since it will insure that people are not making stupid trade or risky gambles if it has a chance to greatly inflict damage on the company. In a free market society, a government needs to control enough power so that things do not get out of hand. The exact amount although cannot be determined.
ReplyDeleteJPMorgan failed to manage their risk management and to watch its regulation. They lost an initial 2 billion which is now resulted in a loss of more than 30 billion. The Volcker Rule would “prohibit banks with federally customer deposits from being able to blow billions of dollars on stupid market gambles”. Yes I think that the Volcker rule would be a good idea because it would prevent banks from losing even more money if they weren’t careful in the first place. In a free market economy government has little or no control. It’s usually controlled by its sellers and buyers.
ReplyDeleteThe banks trading loss of $2 billion led to a $30 billion overall loss, due to a drop in the banks stock after the loss. This was due largely to a lack of trade regulation. With the exception of losses, there are no fines that JP Morgan has to pay because there were no regulations preventing the bank's trading decisions. The Volcker rule would prevent banks with insured consumer deposits from making trades that risk that money. This has positive and negative effects. It would prevent risky investments that harm the economy, but it would also prevent and chance of those investments succeeding. Government control is a necessary evil in an economy. There must be enough freedom to offer incentive for success, but there must be enough regulation to provide a safety net for failure, and to prevent those with what might be called "too much economic power" from affecting the national and global economy in a detrimental way.
ReplyDeleteJPMorgan blew it and lost a bunch of money due to failure to have better regulation. JPMorgan has an initial loss of 2 billion USD and an extra 30 billion USD if including the 19% stock price drop. It is estimated that the 2 billion trade loss could increase to 6 billion. The Volcker Rule prohibits federally insured banks from investing using customer deposits. The rule seems like a good idea to protect customer assets and to keep banks from messing with other peoples money. Government control in a free market economy should be present but be kept at a minimum.
ReplyDeleteWhat caused jp Morgans to lose so much was that they were not regulated and keeping on top of how they were handling their business. The Volker rule prohibits banks from making risky trades with insured coroner money. I think that even in a free market there needs to be regulation, because without someone keeping banks in line and telling them what they can and can't do, they would continent to take advantage of customers .
ReplyDeleteA failure in maintaining strict regulations has resulted in a loss of 30 billion (and counting!) for JP Morgan. An initial 2 billion dollar trading loss was the catalyst to this devastating loss. Once the 19% drop in the bank’s stock price is calculated with that, a grand total of $6 billion comes up. The Volckener rule is meant to inhibit banks from using the money they have been entrusted with for gambling if it belongs to federal-ensured customers. The rule seems to me to be fair. While it may be an impediment to the plans of monetary flourishment of those behind the counter, having rules like this in a free-market economy ensures that the public will have a safe and trustworthy place in which to place their hard-earned money, which they will turn around and give right back to society.
ReplyDeleteWhat began as an initial loss of $2 billion, led to a loss of over $30 because of a lack of trade regulation and poor risk management. The loss was augmented by the 19 percent drop in the bank’s stock price, a trade loss of $6 billion dollars. The Volcker Rule stops banks from making high risk investments with billions of dollars in customer deposits. This is definitely a necessary rule because it protects the investments of citizens. If banks are not a safe place for people to put their money away, they will stop investing money in banks which would then suffer financially. While banks may not be able to make as many huge gains off the risky investments, they won’t potentially lose money that would throw away the people’s money. At least a certain amount of government control is necessary to keep the economy running securely. There should be enough to guarantee safety for investors and not enough to deter motivation for personal financial gain.
ReplyDeleteJp Morgans mistake was a failure to maintain market regulations, which ultimately led to a loss of 30$ billion. Chase will have to pay a 6$ million fine. The Volcker rule would bar banks with federally insured customer deposits from being able to waste billions of dollars on idiotic market gambles. I think the volcker rule will be effective at preventing loss once it is instituted. Some government control is needed to keep order but too much is heavily constrictive. However, The amount of control needed is completely relative to the situation at hand.
ReplyDeleteWhen J.P. Morgan failed to implement stringent regulations, the company initially experienced a financial trading loss of $2 billion dollars. However, the actual assessment of losses spiraled further when the 19% drop in the bank’s stock price was taken into account. The final figure is close to $30 billion dollars in financial loss to JP Morgan Chase when also taking into account fines that have been levied against the banking mega giant. The article in the World Street Journal also details the hiring of an officer by JP Morgan Chase who has a previous history of making high-risk investment choices that have failed in the past. The Volker Rule was established to safeguard the banking consumer by prohibiting banks from investing in high-risk behavior in the market with federally insured consumer’s monies. Although the government should not have its hands into every aspect of big business, there is a need for the placement of a checks and balance system in certain areas. I feel that one such area it should have some over sight in is the banking industry because as is manifested in the recent U.S. recession, where the lack of a checks and balance system led the bank to give away mortgages to people who could ill afford to make that type of purpose thereby giving rise to a very volatile and shaky economy. The resultant chaos to the entire world market is also another valid reason for some form of governmental intercession when it comes to the bank’s freedom to make its own choices of what to do with money that does not belong to them.
ReplyDeleteJP Morgan has failed to tighten on regulation, with about a 30 billion dollar loss. Their initial trading loss was about 2 billion but when you add the 19% drop in the bank stock price it bring us right around 30 billion. What the Volcker rule is it would prohibit banks with federally insured costumer deposits from being able to blow billions of dollars on stupid market gambles, I believe this is a good idea because it gives the investors a more safer feeling. In a free market economy I believe there should be some government control but not to much, Because with to much then it is technically called a free market anymore.
ReplyDeleteJp Morgans mistake arise from not keeping tight regulations on his bank. With money getting risked on a big scale, big losses are inevitable. The initial cost was 2 billion but will total up to 30 billion after fees are added. The volker rule is good because or makes the investors feel safer, out gives them a sense of security. After all, no investors, no bank. The government should only be allowed to intervene in serious layers that rewrite quick action. For example, when companies are taking advantage of their workers or customers, that's when the government should step in. At this point of time the government is striping into way too much, things that don't necessarily need to be stepped into.
ReplyDeleteJP was far to lax in his regulation of his company so they took a loss. That was his main mistake. The initial loss was about $2B but it will end up costing around $30B according to some estimates. The Volcker Rule stops banks from making high risk investments with billions of dollars in customer deposits. 'Tis a good thing because otherwise, the love of money would drive big banks to use other people's money to make high risks and lose everything. This would not be good for the banks or the people unless they got extremely lucky. I think that in a free market economy there shouldn't be a specific rule to prevent this but that it would just be practiced as a common courtesy. However, if that were the case people would take advantage of it and that's why we can't have a pure free market economy. This is why we can't have nice things. No government is needed to control a pure market economy as that's sort of the definition. But, as I said, we can't have nice things such as a pure market economy because the world isn't perfect. --Ian Hunt
ReplyDeleteJPMorgan made the mistake while managing their risk management and to watch its regulation.Their current calculated losses is calculated to be about 2 billion dollars. But the trading loss a lone has increased to 6 billion when the 19 percent drop in the banks stock happened. This rule is vital to the productivity and egalitarianism we so desire. In a free market economy, there is no government intervention, survival of the fittest.
ReplyDelete