I am confused by the recent uproar about JP Morgan losing $2 billion, and their CEO’s (Jamie Dimon) appearance before Congress. I thought we were supposed to hate the banks. If you have watched and listened closely whenever the administration and leading Democrats speak about business, it seems pretty clear that there are certain businesses we are supposed to hate. I am quite certain that we are supposed to hate Fat-cat bankers. So shouldn’t we, and those pushing this philosophy, be happy that this Wall Street bank lost money?
It has generally been the nature of politicians to blame outsiders for problems when their policies fail. This is not unique to Democrats. It just seems that way since their policies fail with greater frequency, and sometimes spectacularly. The list of businesses that have been demonized by the President and his party just in the last few years includes prescription drug makers, health insurance companies, oil and gas companies, Las Vegas tourism, and Wall Street banks. This list is not complete, and there are candidates waiting in the wings such as sugar soda bottlers, snack food makers, and fast food companies. If in power long enough, perhaps just making a profit will attract targeting.
The loss at JP Morgan is an interesting case in that they lost money. There is no risk of a bailout such as we saw with TARP in 2008, since only about one percent of the trading portfolio was lost. The liberals in Washington, egged on by much of the media, have been telling us for the past few years that banks should not make so much money. In fact, the President was very upset in late 2009 when “Fat Cat Bankers” were making money again, and reinstating bonuses. He said…
“I did not run for office to be helping out a bunch of fat cat bankers on Wall Street,” Mr. Obama said in an interview on CBS’s “60 Minutes” program on Sunday.
“They’re still puzzled why is it that people are mad at the banks. Well, let’s see, you guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it’s gone through in — in decades, and you guys caused the problem.” Full article here.
Again, shouldn’t the President be happy? One could only imagine if JP Morgan had announced an unexpected windfall profit of $2 billion on a trade, and raised bonuses. Is there any doubt that these same people would be complaining about that? Perhaps Mr. Dimon should put in a call to one of the tobacco companies to understand what is expected of him. Make enough money to continue to pay taxes, but not too much to be truly successful or enrich yourself.