Why is
Jamie Dimon
Soooo Happy?
Congress Just Made JPMorgan
CEO Jamie Dimon's Christmas.
Big Banks are very much back in Big Business.
Now, why did CEO Jamie Dimon, who makes $27.5 million annually from JPMorgan Chase, personally lobby Capital Hill last week to pass the $1.1 trillion spending bill to keep money flowing.
Keeping money flowing was not his priority. A provision in the new spending bill repealed a key part of the Dodd-Frank Act that came after the financial devastation of 2008 to make banks
more accountable.
Dodd-Frank increased quarterly banking requirements. Now, ONLY 2, 271 columns are required on their reporting spreadsheets. Making sure no one would ever look at the new requirements. "Creative Accounting" was not even necessary this time. Just complexity.
As of last night, Big Banks can now use FDIC insured deposits and other subsidies and
guarantees to gamble in the DERIVATIVES market.
JPMorgan has, as of the beginning of December, $68 TRILLION exposure in the derivatives market and only $2.5 trillion in bank assets.
Derivatives, simply put (since no one really understands the nitty gritty of them), is
someone betting against someone else on something, like a commodity. Let's use shale
oil as a commodity example.
There are $2.2 Trillion bets by Big Banks with the shale oil producers. Problem is for the
Big Banks. Shale Oil has won big time against Big Banks.
Most large shale oil producers guaranteed their profits for 2015 and 2016
through derivatives with Big Banks.
The Big Banks' computer model NEVER accounted for oil dropping $40 in six months.
And Big Shale Oil producers locked in their profits for 2015 and 2016 at 100 Dollars per barrel.
Big Banks are BIG Losers.
So, Mr. Dimon, even though JPMorgan spent $12,157,587 on lobbying and contributions on just the mid-term election last month, needed the repeal of these key parts of Dodd-Frank.
And he accomplished his mission.
Big Banks ARE Back.
MERRY CHRISTMAS!!
Jamie Dimon's 2013 Christmas Card.
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