Jamie Dimon: CEO of JP Morgan Chase
Why We Need Serious Bank Regulation
Here we go again! JP Morgan Chase has already admitted to squandering two billion dollars on risky investments that CEO Jamie Dimon – who is rumored to be the smartest banker in America – has already confessed was “stupid” and “self- inflicted.” But now it is rumored that the real deal on the losses is that when the final tally is made the loss will be four billion.
In a frantic attempt at damage control they decided to kick Ina Drew, head of the Investment Office, to the curb. But at the stockholders meeting in Tampa a few days later Dimon was not only retained as CEO but was awarded a 23 million dollar compensation package! They left no doubt that the bank has hitched their star to his leadership.
Yet as President Obama has pointed out, it is precisely because Mr. Dimon is so highly regarded as a “smart” banker, some say the brightest bulb in the box, that we need to fully enact the regulatory regime he has put in place to police the activities of banks in order to prevent these things from happening. But the Republicans who control the House say No dice!
The “free market” ideologues in the Grand Obstructiionist Party claim to see nothing in this that would justify tightening the reins on bankers. And they are supported in this position by their presumed presidential candidate Mitt Romney….a corporate raider who is contemptuous of the public interests and thinks there should virtually be no government regulation of the private sector.
Far from being alarmed by the four billion dollar debacle, and calling for more effective regulation of the banking sector, Mitt The Stiff coolly pointed out that although the losses at JP Morgan Chase are “substantial;” it only concerns the bank and their investors. He came close to saying “the public be damned!”
The problem with Mitt’s attitude and analysis is that if JP Morgan Chase gets in serious trouble and is in danger of collapse, it is we, the taxpayers who are innocent by-standers that will be called upon to bail them out. And we will have no choice but to go along with the program, because refusing to do so will be tantamount to cutting off our nose to spite our face.
The kind of economic sophistry spouted by Mitt and his ilk on the right, militant ideologues on the left, and anarchist of both ideology stripes, who argue that we should just let such banks fail, is dangerous nonsense that would unleash the dogs of chaos in the US economy. Alas this cure would prove more deadly than the disease.
Failure by a bank as big as JP Morgan Chase, with 2.3 trillion in assets and a 71 trillion derivatives book, could bring down the entire banking system in the US and the collapse would quickly spread world-wide. They are literally too big to fail! That’s why the refusal of the House Republicans to fund the agencies tasked with regulating the banks amount to criminal negligence of the public interests.
The Republican pledge to undo the regs all together should they gain control of the Senate and the White House borders on treason! This policy could bring on the fall of our country; millions of Americans would again suffer catastrophic financial losses before fully recovering from the last economic disaster ushered in by the liaise faire policies of the Republicans.
The prescription for restoring a healthy banking system advocated by Elizabeth Warren, a Harvard Law Professor who played a critical role in designing the Obama Administration’s regulations, is that Congress restore the Glass –Steagall Act. “With the Progressive Change Campaign Committee,” she says, “I’m calling on Congress to put Wall Street reform back on the agenda and to begin by passing a new Glass-Steagall Act. This was the law that stopped investment banks from gambling away people’s life savings for decades — until Wall Street successfully lobbied to have it repealed in 1999.”
This prescription is echoed by securities lawyers, other banking professionals and some Democrats. But the Republicans will have no part of it; they only intend to give lip service to regulating the bankers when it is convenient. Left to their own devices they fully intend to allow investment bankers to gamble with the nation’s economy using exotic financial instruments such as Derivatives and Credit Default Swaps.
These are the practices that drove the economy off the cliff under the Bushmen, and they are the principle culprit in the present JP Morgan Chase debacle. As I write reports on the financial channel CNBC are suggesting that another 100 billion in investments could be at stake due to the shock waves from the present blunder that is shaking investor confidence. Should that happen who knows where it will all end? It is too ghastly to contemplate….so most people choose not to.
Alas, while the rest of us are forced to bail the banks out when they fuck up and face collapse, nobody bails out the hard working citizens who are forced to bear the loss. They are just shit outta luck as my grandfather would say. The Afro-American community was especially devastated by the Bush Depression – which President Obama prevented from becoming the worst depression in American history – 65% of aggregate black wealth was wiped out. My sister Melba is a classic victim of the banker’s folly.
Melba is a model citizen; she did everything right. She went to college and earned three degrees; she worked for over forty years as an educator; she save her money and invested it wisely….or so she thought. Just a few years into her retirement, while serving as the principal caretaker of our 90 year old mother, she was victimized by the amoral and reckless behavior of the bankers that wrecked the American economy. In a matter of months she lost a half million dollars; her life’s savings was wiped out!
As I spoke with Melba in her lovely home down on the Jersey shore a couple of days ago, she spoke with a barely concealed rage as she recounted Governor Chris Christie’s attempts to renege on the agreement’s her union negotiated in good faith with the state regarding retiree’s benefits – and which she paid into for 40 years.
It is especially galling because he has given away billions in tax breaks to the filthy rich! She lamented the fact that she couldn’t even write her losses of her taxes, and she has no doubt that she is the victim of a vast conspiracy of the investor class and their shills in government to fleece the working class and make us pay for their mismanagement of the economy.
Melba is also convinced that the bankers and the political puppets that refuse to seriously regulate their reckless activities and protect the public interests – which all politicians are sworn to do – are the worse liars and criminals in America. So do I…that’s why I have publicly insisted that a just punishment for the bankers who crashed the economy is to be executed on primetime television by firing squads manned from volunteers recruited by those whose lives have been injured by their heartless crimes.
Jamie Dimon of JP Morgan Chase escaped any blame for the Bush crash, mainly because he was wise enough to stay out of the securitized sub-prime loan fiasco, but the present multi-billion dollar losses is a warning sign that he too bears watching. There are some experts on our financial system who think Dimon has just been lucky, because JP Morgan Chase has engaged in all kinds of risky, unethical and even illegal behavior under his stewardship.
Professor Amar Bhide of Tufts University – where Dimon received his undergraduate education – has gone on the public record arguing that this unsavory record makes Dimon unfit to head a massive financial institution of critical importance to the stability of the US economy. Furthermore, aside from the questionable ethics of many of his activities, Professor Bhide questions the extent to which Dimon even understands the extremely complex business of derivatives trading.
“Jamie has never been a trader or a front line manager of a big trading firm,” he says, “it is absurd that such a man should be in charge of a 71 trillion dollar derivatives book.” Hence it goes without saying that if Jamie Dimon is the best and the brightest of America’s bankers, that is the best argument for implementing the Dodd-Frank financial regulations immediately.
It is also the best argument for defeating Mitt Romney and taking back the House in the coming elections. Americans have the power to do it with their votes, but it is far from a fait accompli because millions of Americans are too caught up amusing themselves with bread and circuses to pay proper attention to these complex matters.
Thus ”Boobus Americanus” is fairly clueless about what the late great novelists/essayist James Baldwin once called all that boring “politics and economics jazz;” a comment that horrified political theorist Harold Cruse. For as Thomas Jefferson warned at the inception of our participatory democracy: “An ignorant electorate will elect and return the worst people to power!” That’s why the future of this nation is at stake in the coming elections.
One Percenters: The worst Case Scenario
Warning: Don’t Put Ken and Barbie in the White House!
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Playthell George Benjamin
Harlem, New York
May 19, 2014
My Life Among the Chattering Classes
Posted in Cultural Matters with tags Black Panther Party., Dr. Muhammad Ahmed, Joe Rainey, Malcolm X, Max Stanford, Opportunities Industrialization Centers, Playthell's Commentary on Radio, Queen Mother, Rev Leon Sullivan, WBAI Radio, WDAS Philadelphia on May 27, 2012 by playthellOn WBAI FM, Live and Direct from New York City
Why I love the Radio
On May 25, 1962, my 20th birthday, I made my debut in the wonderful world of radio. It was a live broadcast over WDAS AM in Philadelphia. I presented an hour long lecture on African history, analyzing the African character of Egyptian religion and Divine Kingship. At the conclusion of my lecture the producer opened the phones and I took questions for two hours. The response was sensational and I presented a series of history lectures twice a week for four years. My life has never been the same.
The show was called “The Listening Post,” and was hosted by Mr. Joseph H. Rainey. Judge Rainey, as he was known through-out the city, was a retired Magistrate in the Civil Court, a political player in the Democratic machine, which allocated power and privilege in the city, and a militant advocate for Afro-American rights. Judge Rainey was the grandson of Congressman Joseph H. Rainey, the first Congressman seated from the defeated confederate state of South Carolina after the Civil War.
Judge Rainey had deep roots in the Afro-American elite, but the militant fighting “Talented Tenth,”who answered the call of Dr. DuBois to assume the leadership of the black community, and guide the masses to higher ground. One of the benefits of my association with Mr. Rainey on “The Listening Post,” was that it was the show all the smart progressive Afro-Americans listened to in Philly, Southern New Jersey and Nothern Delaware. It also had a smaller white audience composed of leftist intellectuals and civil rights activist. The Listening Post would have been right at home on WBAI.
My involvement with the show transformed my life; it was a gift that keeps on giving. Among the highlights of my participation on the show was the fact that Judge Rainey was good friends with Malcolm X. And whenever Malcolm spoke in Philadelphia, Wilmington Delaware or Camden New Jersey, he came on the show the day before his speech.
Hence I got to know Malcolm quite well, and had a bird’s eye seat during the last three years of his life as he went through radical changes and ultimately assassination. I was there for the broadcast that Dr. Manning Marable describes in his Pulitzer Prize winning biography: Malcolm X, A Life of Reinventions.
Judge Joe Rainey Interviewing the Great Jackie Robinson
The “Listening Post” was a pioneer in Progressive Talk Radio
But it was also on The Listening Post that I met Queen Mother Moore, an indefatigable freedom fighter whose resume included a stint with Marcus Garvey and the American Communist Party. A New Orleans Creole who had settled in Philadelphia, she was 65 when I met her and she took me under her wings just days after my birthday broadcast, and tutored me in the art and science of politics and mass struggle.
The Queen Mother aka Audley Moore was one of the great women of the 20th century, and she left an indelible mark on me. I also met the Reverend Dr. Leon Sullivan, “The Lion of Zion,” who was to become one of the most powerful men in America by the end of the turbulent 1960’s.
Queen Mother Moore
My first political Tutor
The Lion of Zion!
A visionary and servant of the people
Suffice it to say that Reverend Sullivan hired me to teach a course on black history in the basement of his church, Mount Zion Baptist. Me and Max Stanford would organize the Revolutionary Action Movement from that class. And it was RAM cadres who went on to organize the black Panther Party of Oakland. Bobby Seales and Huey Newton were students at Merritt Junior College, where one of our Cadres’ got a job teaching sociology, and they were his first recruits. Bobby refers to his teacher and revolutionary tutor as “Kenny Freeman,” but that was his “slave name,” we knew him as Mamadou Dia.
When the War on Poverty began Reverend Sullivan founded The Opportunities Industrialization Centers, which began in Philadelphia and spread to over 100 cities. He hired me to each in the main center in Philadelphia, and develop a black history curriculum for the national program. The Philadelphia Board of education hired me as a consultant to work with cirriculum specialist and conduct seminars with history teachers in the school system in the teaching of African and Afro-American history in 1966.
Other school boards around the country also began to hire me to conduct seminars or present a lecture series on the subject ranging from witchata Kansas, Minneapolis and Saint Paul Minesota, and Riverside California. By 1969 I was a founding member of the WEB DuBois Department of Afro-American Studies at U-Mass Amherst, he first degree granting Black Studies in the World. That’s what my first foray into radio did for me.
When I left the university and moved to New York, after a stint in the music, boxing and construction business I returned to radio at WBAI around 1986. That’s when I began the series “Commentaries On The Times.” This brought me to the attention of Terry Johnson, the City Desk Editor at the Village Voice, who invited me to write for the paper. The second article I wrote was an 8000 word feature that was publshed as the cover story in 1988 titled “Jive at Five: How Big Al and the Bully Boys Bogarted the Movement.”
It was nominated for the Pulitzer Prize in Explanatory Journalism. ( see the nominating letter in my bio on this blog) This article brought me to the attention of the Senior Editor of the Manchester Guardian in England who commissioned me to write a feature for the Guardian. Thius began an association that lasted several years, in which I wrote for the front and the back of the paper – politics, the arts, and boxing.
When the Arts Editor, Joslyn Targett, became the Editor of the prestigeous Sunday Times magazine “The Culture,” he invited me to come along for the ride. I was given carte blanche to write as much as I wanted to. When two of my feature stories from the Village voice were selected for study at the Columbia School of Journalism, the top of the food chain for training professional journalists, I was recruited to write by the New York Daily News.
From there I was recruited to write commentary and features for “Emerge” magazine, a nationals Afro-American hard news publication. I was nominated for a Pulitzer Prize for Distinguished Commentary at the News, and I was nominated for Foriegn Correspondent of the Year several times. And I won awards at ever othere one of the publications I wrote for. And eventually I held an Adjunct Professorship in Journalism at Long Island University.
All of this grew out of my work at WBAI FM in New York, where I would also host two different talk shows. Radio has been as good to me as baseball was to Chico Consuello! That’s why I’m still droppin science on the radio 50 years after my first broadcast on the Joe Rainey show on May 25th 1962.
Double Click on the link to see Playthell Live on Air at WBAI
http://youtu.be/pnpR9p7Sl1U
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Playthell Benjamin
Harlem, New York
May 25th, 1942