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Susan Ochs, former Treasury Department TARP advisor, weighs in on the OCC hitting JPMorgan with enforcement actions this week.
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Derivatives at -- -- -- is -- former Treasury Department advisor for the Clinton and Obama administration don't wanna start with the SEC's enforcement action.
We're coming up on earnings and a -- for JPMorgan is this a big hit -- them are -- move past -- effectively.
You know I think it's an important development because it really shows that effective risk management is something that's going to be really important.
For banks going forward it's something we've always known but the fact that.
The and force an action is -- the fact that the board is talking about potentially dean Jaime -- bonus because of this issue it's showing that boards are starting to think more broadly about.
Strategy the firm and broader management it's not just about -- the quarterly earnings yeah it's quite frequently million dollars back in 2011.
He is the highest paid CEO out there way surpassing other bank CEOs.
-- the board's call whether to release the long the well.
Report this hurts him.
-- -- actually that.
It does look -- his bonus may take -- hit either way it's not about whether they released a report what concerns me a little bit about JPMorgan is the fact that Jamie Dimon is not just CEO he's also chairman of the board.
Which in the governance -- not a good thing.
We like to have this you conditions but precisely because when their decisions like this -- come up you want the boards be independent have to say.
That this may make -- CEO look bad.
But we're gonna do this in -- in the interest of transparency you know one of the things that we're gonna be saying is the implementation of Basel -- -- pushed back at the -- of any more regulation more accountability they're gonna have to have more capital reserves.
And -- the financial sector best performing sector of 2012.
Little nervous -- isn't.
Of -- 2013 is gonna -- for the Oscars you know it's -- there are still you know clouds on the horizon there's new regulation and we're still a very low interest rate environment which makes it very difficult to make money on the traditional core business of banking -- -- -- -- you know taking -- deposits and lending money -- -- -- but there are -- also really interesting opportunities and one -- -- -- I would -- around technology and banks that are still looking -- investing even in this environment are the ones are gonna come out ahead at the end of this year -- -- let you -- exactly going to be the new Treasury Secretary have you worked for Treasury Secretary -- what do you -- of the -- I think he's a great choice -- -- I think that was gonna -- -- absolutely absolutely saying all right -- -- will follow up with -- -- The confirmation process again absolutely not going to be boring now -- yeah.
-- -- -- -- -- And we come back you.
