The New York Times Business section runs some quotes every weekend, and this one caught my eye:
“Essentially, JPMorgan has been operating a hedge fund with federally insured deposits within a bank.”
Mark Williams, a finance professor at Boston University. Losses on a bungled trade at JPMorgan could far exceed an initial estimate of $2 billion. <NYT, July 1, 2012>
Amazing, isn’t it, that this could happen after Obama’s 2010 “Financial Reform” law (Dodd-Frank). We all know why: because the law was and is a fraud — it reformed precisely nothing. And the JPMorgan trading loss is merely another concrete piece of evidence of this fact.
I like the Williams quote because it references the heart of why Bill Clinton and Bob Rubin were wrong to dismantle Glass-Steagall and allow commercial and investment banks to merge: federally insured deposits need to be kept safe from sales and trading investment banking activities. But after 65 years of keeping them separate, Clinton/Rubin saw fit to give greedy Wall Street gamblers the keys to mingle them again.
Adding Democrat-insult to Democrat-injury, Barack Obama deliberately chose not to reinstate Glass Steagall in the wake of the 2008 global financial crisis. He made this choice for at least two reasons:
- He chose to use the crisis instead to destroy American health care (a non-crisis)
- He is a craven man addicted to campaign contributions and would rather coddle Wall Street criminals than anger them by doing what’s right
Do voters care that Obama deliberately left Wall Street alone and that too-big-to-fail institutions are still gambling in ways that could bring down the whole system again? Mitt Romney had better make them care, because our future depends on ending the charade and showing Obama the exit from occupation.