Originally Posted by zikzak
You're acting like this happened in a vacuum.
If JP Morgan had a squeaky clean past, you might have a point.
If the entire world economy hadn't recently gone off the rails in no small part due to trades exactly like this one, you might have a point.
JP Morgan lost money in derivatives trading. In derivatives trading for every dollar lost, someone else makes a dollar. No wealth disappears or is made.
In the financial collapse where the government encouraged risky mortgage and in fact sponsored risky loans through Freddie Mac and Fannie Mae money was just lost. Real Estate is not a zero-sum game. When real-estate loses value the money doesn't go to anyone.
So this is absolutely nothing like the financial collapse of 07-09.
In this case the Democrat Jamie Dimon is a member of the Federal Reserve that is supposed to be regulating his bank.
The head of the Federal Reserve bank of NY is another Democrat (William Dudley) who used to work for JP Morgan.
The Federal Reserve regulates what banks do with their capital and the amount of risk they are allowed to take.
This incident is a perfect example of why regulation is ineffective.