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Bossing Around Jamie Dimon

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    Mark Williams, finance professor at Boston University, on Jamie Dimon’s hearing and the trading loss.

  • Duration 4:23
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But I extend JPMorgan CEO Jamie -- his testimony before house committee over the bank's two billion dollar plus trading las.

So there's -- highlights joining us now Mark Williams a finance professor -- university.

-- former fed examiner who also wrote a book about the collapse of Lehman Brothers called un controlled risk.

But think should be around us you're not gonna call this uncontrollable risk are you.

No hopefully not.

It won't believe not I mean I do think there's something to be said about the fact that the regulators -- that in barely even knew this trade existed.

You now think we're gonna have regulators find this stuff -- in the future.

-- -- it became pretty clear I think early in the testimony that the regulators got up they spoke.

The congress -- clearly got that point by saying hey.

You know these regulators couldn't figure it out we had over a hundred people 200 -- -- -- looking there but what happen.

So obvious -- it's not clear that the regulators were found at but I think got to look at the very top of the pyramid.

And this is an area of the company it was making 10% of profits last year why didn't Jamie -- -- see it.

-- it Jamie Dimon is is you know the control of this company has people underneath a matter of some -- -- -- watching all his little subdivisions.

And this so again is private money how he chooses to run his business whether he pays attention or not.

Is not really the place of congress to decide -- is it.

Writes I don't think really that was on trial or in the discussion of the testimonies today -- the point really with just says this is the largest bank in the country.

Some of the most sophisticated folks the very top how can they at least two or three now maybe -- -- of four billion dollars.

In a single trading strategy but I had -- -- the quest.

I think that is the point though the fact that congress has the nerve to ask that question it's not taxpayer dollars that -- on the line I mean.

You know you -- we got representative Brad Sherman saying that he -- now going forward.

Jamie Dimon takes the money out of the London office and gives it to medium and smiles small businesses.

Who it's not CEO -- how to run his business.

-- will that was that was a bit much is no question about that.

Okay so.

What happens going forward I know there's many people out there asking for more regulation Jackson thing that's gonna help.

Well two things I think more regulation -- com I think this discussion today was helpful from one perspective that is that.

I think Jamie Dimon did a nice job of trying to explain risk management.

Two taxis congressman in particular I think he allowed the American people -- for a glimpse into they had in the mindset.

Of a banker and in a very well respected banker and how I think about risk and managing it so I I think that was a real positive today.

I think guys think Johnny diamond though missed a couple points that we're very very important.

You know one of the things he did say though is.

You need risking make money.

So this notion that the regulators are trying to remove the risk well therefore then removes the profit center.

Well we know that fundamentally what is -- commercial bank collide.

JPMorgan supposed to do -- but to take -- deposits make loans how much it really supposed to be involved in trading that's a question.

Shouldn't be allowed to lose 234.

Billion dollars a single trading strategy and I think that's really what the discussion should be I wasn't the focus of today.

Now it was -- and quite frankly again -- I'm not sure it should be the focus of congress this is something Jamie Dimon.

Should take up with his board.

The company and the shareholders I don't know where congress plays a role in how Jamie Dimon runs his business.

Well I think he did a pretty good job defending himself last week of front of the -- -- last week it was like a pillow fight.

You'd say most of those senators republic employees of JPMorgan I think this week.

I was moved less of a pillow fight I think Jamie Dimon did a nice job of defending his position.

I think there -- some weaknesses LAE he told us that JPMorgan isn't too big to fail that's absolutely incorrect it's too big fell.

An -- acting that's going to be subject for debate for years to come in.

God willing they don't regulate -- banking industry right out of business Mark Williams a Boston University thanks taken the time to be with us.

Thank.

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