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-- you called.
JPMorgan's political action committee has stopped donating to federal politicians right after.
It's highly publicized two billion dollar plus trading loss.
Went public all that according to Politico.
The JPMorgan pac political action committee spent about 1910191500.
Dollars on May seventh.
Right before news broke of that giant lost JPMorgan's pac gave several contributions to members of both parties last month.
And ended may with over 650000.
Dollars in reserve with more on JPMorgan let's bring in Robert Stephen -- -- Former vice chairman at Goldman Sachs and this book is called what to ask the person in the -- there it is good to see you.
A once again -- -- You know we also -- -- to talk about some of the stuff coming on Europe but they're what do you make -- JPMorgan.
-- It may be coincidence but I think -- be Smart if they note if you know you're CEOs going to be testifying before congress.
It doesn't look good if you're giving campaign contributions to elected officials so I think that's that's Smart and they they're Smart bank.
They do things the right way and that if that was intentional I think it's Smart.
What grows out of that because again the house financial services committee did give Jamie Dimon a harder time than the senate banking committee did any questions were more aware.
Sufficiently point -- I thought and trying to do do.
Draw out from him what went wrong -- and how well run that bank is that worry you at all.
He's been very forthright in my opinion people have to understand I was in the business for 2223.
And I work a lot in the industry.
Banking -- about risk and you do make mistakes he's been very forthright and honest.
And up front that they made mistakes he made mistakes they've -- people they've been accountable he's also made the point which I agree with.
People shouldn't be confused making a loan to a business -- small business.
Is is just as risky as investing in a portfolio count and by the way buying thirty year treasuries.
Is very risky today so one of the banks are struggling with following issue -- got all these capital requirements you're very low interest rates they do need to manage.
There excess deposits.
They made a mistake on this one.
It happened so I don't think we should overreact to it.
But if the mistake is big enough and that's what the question the question brings up in some people's minds of the -- if the mistake is big enough.
-- we as taxpayers still have to bail out ex bank here in the united -- this.
-- main regulatory reforms that are critical.
Our we did the banking system didn't have enough capital in the last downturn by the way JPMorgan is the only bank that did -- -- last downturn.
But based -- have enough capital and they're too interconnected.
Those of the -- main things that need to happen in banking reform and I'll talk about derivatives counterparty risk.
Within that banks are there still gonna lose money loan lending to small business is risky.
But I think if they have enough capital they can weather no I don't think the taxpayers gonna have what.
Deaths that one question because it follows up on what's happening here in terms of whether we need stronger rules and they just said a moment ago that Europe is thinking about relaxing these collateral requirements for there.
Thanks so well that they haven't -- different issue for our banks I think our banks are well capitalized right and that we need our banks to take more risk ironically.
And to lend more and I think our banks are getting mixed signals I know they are.
Between congressmen elected officials and regulators do you think the Fed does what Bank of England story about will give me the money to land -- -- -- you Greenland.
-- and know they're they can't do that and I think the banks are being very aggressive about lending that the same time the regulators are saying you need more capital.
The translation of you need more capital is make less small business loans so they're getting mixed signals that Europe's got a different problem.
Europe's problem is their banks are not well capitalized.
They have a crisis they need to get through it's gonna require the entire EU to solve it.
And what -- what these what the banks in -- percent of the regulators are we'll give you a bridge -- to get through this that you got to raise more capital.
And the governments need to -- -- average also dampens practicing -- much Robert Stephen Kaplan -- -- Goldman Sachs vice chairman but a professor.
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