More than anything, this shows the corruption of our government and their willingness to do whatever the big banks tell them to.
Now JPMorgan has at least a $2 billion loss (and it’ll probably be much larger)Â because of insanely risky trades. Other banks are no doubt making the same kinds of trades. In the Alice-in-Wonderland world of D.C. these trades were called hedges even though there were no offsetting trades and thus nothing was being hedged. The SEC has pretended to rouse itself from napping and is “investigating.”
With the exception of just a few legislators, like Carl Levin and Bernie Sanders, the reaction from Capitol Hill to the JPMorgan debacle has been crickets.