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View Full Version : What Jamie Dimon Won’t Tell You: His Big Bank Would Be Dangerously Leveraged



daledo
8th December 2010, 01:27
The debate is raging about banks and their size, financial regulation, and the international capital standards known as “Basel”. Jamie Dimon of JP Morgan Chase, in his New York Times magazine profile, expresses admiration for the Basel committee and says,

“… they are asking the questions that, in theory, bankers ask of themselves: how much capital do banks need to withstand the inevitable downturn, and what is an acceptable level of risk?”

There is one problem, however. Basel may have asked the right question, but it did not come up with the right answers, mainly because it allows banks to remain dangerously leveraged, setting equity requirements way too low. This fact is not understood because the debate on capital regulation has been mired with a cloud of confusion, and filled with un-substantiated assertions by bankers and others. As a result, the issues appear much more mysterious and complicated than they actually are.

After a massive and incredibly costly financial crisis, we seem to have financial system that is a more consolidated, more powerful, more profitable and, yes, as fragile and dangerous as we had before the crisis. How did this happen and what can we do? .... continued here http://baselinescenario.com/2010/12/04/what-jamie-dimon-won%E2%80%99t-tell-you-his-big-bank-would-be-dangerously-leveraged/

Ahkenaten
8th December 2010, 02:11
This is one of the biggest problems and challenges we face today as a species. I am so discouraged about the so-called banking and monetary systems that I am willing to go back to trading with clam shells or better yet - just barter.

daledo
8th December 2010, 02:32
This is one of the biggest problems and challenges we face today as a species. I am so discouraged about the so-called banking and monetary systems that I am willing to go back to trading with clam shells or better yet - just barter.

I hear you... I try to not use any form of money. Bartering is the way to go. Many cities are using currency that is produced by the city. This system enables goods and services to stay local. You cannot outsource because these credits or money can only be redeemed within their community. All we are doing now is shipping our hard earned dollars overseas since we are not a producing country anymore or into the pockets of CEO's in the form of $200 million dollar salaries and bonuses.

Connecting with Sauce
8th December 2010, 15:48
This is really good :)


http://www.youtube.com/watch?v=I0mhX9hpq3g

Steven
8th December 2010, 16:45
The situation seems hopeless at some points, but there are solutions, not perfect, but at least it gives alternative to this financial/monetary systems of hidden slavery. Here is a small example among others, the Lakota Bank.

http://www.freelakotabank.com/

Namaste, Steven