Ubercapitalist Begs for Government Intervention
Fresh off the Friday news dump that its profits stalled in the last quarter (after it had to stop laundering money for Iran and inheriting the lost money of MF Global customers), fresh off the news that JPMorgan Chase might lose $5 billion in the Europe crisis, and, it should be said, fresh off the departure of a JPMC Exec from the White House Chief of Staff position, Jamie Dimon is calling for a real solution to the housing market.
“I would convene all the people involved in the business, I would close the door, I’d stay there until we resolved a bunch of these issues so we could have a more healthy mortgage market,” the 55-year-old chief executive officer of JPMorgan Chase & Co. said today.
The patchwork of U.S. and international regulatory policies governing the housing and mortgage markets are hampering recovery here and abroad, Dimon said on a conference call with analysts after the New York-based bank released fourth-quarter earnings. In the U.S., state foreclosure laws conflict with a variety of federal policies on refinancing or modifying loans to troubled borrowers, Dimon said.
Leadership is needed to overhaul the industry, including reviving the market for private-label residential mortgage bonds and reforming regulations governing mortgage repurchases and foreclosures, he said.
“You could fix all this if someone was in charge,” Dimon said, tapping on the table for emphasis. “No one is in charge.”
Which is pretty funny, since a bunch of Attorneys General just did show some leadership.
Attorneys general or representatives from nearly 15 states met in Washington, D.C., on Tuesday to discuss and share different enforcement options and strategies around various mortgage-related issues, according to sources familiar with the conversation.
The meeting was prompted by the slow pace at which a national foreclosure settlement led by the Obama administration is progressing, and is likely to be the first in a series, said these sources.
[snip]
“This past Tuesday, a group of like-minded Attorneys General met in D.C. to discuss ongoing and future investigations into the mortgage finance and foreclosure industries,” said Delaware Deputy Attorney General Ian McConnel.
“The talks weren’t just about investigations,” said a source with knowledge of the discussions. “They were also about the attorneys general offices feeling uninvolved in a process by which their federal colleagues have been negotiating on their behalf.” [my emphasis]
Or maybe it’s this show of leadership that’s got Dimon whining?
But what I find most amusing about this ubercapitalist begging for government intervention is this: Dimon says he’s gonna lock “all the people involved in the business” in a room until they come up with a solution. But note who he’s going to invite?
Jamie Dimon has a plan to fix the U.S. housing market: lock mortgage lenders and regulators behind closed doors until they figure it out. [my emphasis]
Because if you realized that homeowners, too, were a fundamental part of the housing business, you might lose your cred as a psychopath.
Huh, sounds like all those state AGs have got Dimon a teensy bit freaked out, eh?
I especially liked this bit:
In Dimon’s world “policy” trumps “law”. Well, why not? The law does not apply to guys like him. No wonder he is tapping tables for emphasis in little fits of irritation.
This is somewhat tangential, but Dick Cheney was on the board of Morgan Stanley-even prior to his association with Halliburton…according to a biography of Cheney by Stephen Hayes.*
(Morgan Stanley was forerunner of JPMorgan Chase.)
* Cheney: the untold story of America’s most powerful and … -books.google.com/books?isbn=0060723467…
Stephen F. Hayes – 2007 – Biography & Autobiography – 578 pages
After leaving the Pentagon, Cheney had joined the boards of major American … including Union Pacific Railroad, Procter and Gamble, and Morgan Stanley. …
Jejune little asshole our Jamie is, no? I guess this is supposed to be the kind of thing that earns him the big bucks: to the efforts of others, just add Jamie, and …!
Krugman just put up a reminder of how narrow the base of the maldistribution of income growth has been lately. And the narrower it is, the more of a put-up job it resembles.
A little Berlioz accompaniment. Get ’em to step lively, now!
I’m coming around to agree with those who espouse tar, feathers, and fencerails. These dipshits have long since worn out their welcome.
Someone call the WAAAHHmbulance for Jamie. Preferably the one with the nice guys with the white coats and the funny jacket.
Well, what did you expect? that a One Percenter would include any 99%ers in finding a solution? Of course not! Only other One Percenters would be considered. After all, they are the Ruling Class, you know.
(Ick. I’m becoming too cynical. I need to go watch Heidi or something.)
Bob in AZ
I wonder how many homes could be rescued if all of Jamie’s ill-gotten gains were confiscated. And his (how many?) houses were sold. He might have to live in only his condo….
In the U.S., state foreclosure laws conflict with a variety of federal policies on refinancing or modifying loans to troubled borrowers, Dimon said.
Leadership is needed to overhaul the industry, including reviving the market for private-label residential mortgage bonds and reforming regulations governing mortgage repurchases and foreclosures, he said
He is so FREAKING STUPID! I can’t believe somebody on the phone with him didn’t call him on this bullshit. Notice he said foreclosure laws in the US conflict with HIS END OF THE BUSINESS STICK! Does he think the Fed Government owns all the property in the land and all he has to do is make up a document for it and transfer all of the land to him?
Yes, all the states have their own laws on foreclosure proceedings. However, he forgot that they also have laws regarding chain of title/ownership and he is too damned worried about selling securities rather than getting the mess straight. Business as usual, huh, Jamie?
Dimon, you are an idiot and you just proved it while you were acting like the most important man in the world!!!!!
@PeasantParty: And another thing, Mr. Stupid in a Suit. You have forgotten how mortgage insurance plays into the scenario of most of those mortgages that are in default.
Where do the mortgage insurance scams stand in this circus arena?
@PeasantParty:
He is so FREAKING STUPID! I can’t believe somebody on the phone with him didn’t call him on this bullshit……pp
WHO you gonna call…truthbusters?
Where’s those darn truth vigilanties when you need ’em most??
I have a hard time believing that he thinks the foreclosures are the cause of the economic problems.
He really is in line for the treatment, if he can’t see how pulling several billion dollars out of the economy (and putting a hefty chunk of it into his and his buddies’ pockets) is close to the root of the problem.
our jaimie –
isn’t the little lad just too cute?
auditioning for secretary of the treasury.
and such a confident laddie for a seven-year old.
such a lovely song,
and he’s SO on pitch.
@P J Evans:
Yesterday,over at FDL, Dylan Ratigan and Bill Black were the guests,discussing Ratigan’s book,”Greedy Bastards”.
The pervasive perversion of greed in today’s market was the topic du jour,garnering this particularly interesting comment from Mr. Black:
William Black January 15th, 2012 at 3:54 pm
165
In response to Gitcheegumee @ 148
Herr Hummler is one of the leading banking commentators in Europe (his montly letters go out to 100,000 recipients and major financial papers frequently quote him. He is the CEO of Switzerland’s oldest private bank (i.e., a bank specializing in aiding foreign tax evasion). He blames the Swiss crisis on America and he blames the U.S. crisis on lending to racial and ethnic minorities. He has a favorite metaphor, but he fails to understand that it destroys capitalism.
That’s strange because he’s a theoclassical economist who got his Ph.D at U. Rochester (a bastion of U.Chicago economics).
His metaphor is that the investment banks knew they were buying bad mortgages, so they treated them like sausage and hid the bad loans in financial derivatives (CDOs) that they then sold to the world. This reverses Adam Smith’s claim and makes capitalism criminogenic.
NOTE: I wonder if Herr Dimon receives Herr Hummler’s newsletters??
I pondered whether we should send Herr Hummler a complimentary case of Vienna Sausages…perhaps we should include Mr. Dimon on the gift list,also?
(IIRC, Austria and Switzerland share borders.)
Here’s a thought: I declared bankruptcy in 2007 writing off debts to Chase and BoA. I just received a notice from the IRS that I owe $35,000+. It seems Chase and only Chase sent 1099s into the IRS citing the debts wiped out in bankruptcy as cash paid to me. How they were able to claim it is beyond me unless it’s a way that they think they can write-down losses by making bankruptcy settlements appear as money paid out which they can claim as a cost of doing business.
And how they’re able to claim it in 2009 when the event occurred in 2007 is another surprise for me.
@matt carmody:
The IRS doesn’t like people who cheat in either direction. I suspect they already know about this kind of trick. I’d expect that you have copies of all the paperwork.
@matt carmody:
Not to be snarky,but did you see my comment @ #2?