PLEDGE NOW
No More Too Big To Fail?

With JP Morgan’s Jamie Dimon on the hot seat, we look at the loud call to fix American banking by breaking up the biggest banks.

People arrive at JPMorgan Chase headquarters in New York Monday, May 14, 2012.(AP)

People arrive at JPMorgan Chase headquarters in New York Monday, May 14, 2012.(AP)

JP Morgan Chase chief Jamie Dimon in the hot seat today before Congress, apologizing for the high-risk trading fiasco that cost his bank more than $2 billion.  A lot of serious players don’t want an apology.

They want Dimon’s bank broken up.  And not just JP Morgan.  Citigroup.  Bank of America.  Wells Fargo.  And watch out Morgan Stanley.  Goldman Sachs.  They’ve been called too big to fail, too big to manage, too big to regulate, too complex to understand, too risky to exist.  And when they shake, you pay.

This hour, On Point:  the call to break up – make smaller – America’s biggest banks.

-Tom Ashbrook

Guests

Nela Richardson, senior economics analyst for Bloomberg Government.

James Kwak, professor at the University of Connecticut Law School. He with economist Simon Johnson – at “The Baseline Scenario.”

Peter Wallison, fellow in financial policy studies at the American Enterprise Institute.

C-Segment: Temple Grandin Commencement Address

You can find a transcript here.

From Tom’s Reading List

Wall Street Journal “Lawmakers are set to grill J.P. Morgan Chase & Co. chief Jamie Dimon on Wednesday over how the largest U.S. bank was able to retain losses of more than $2 billion from credit derivatives trades and whether the problems it highlights are enough to push policy-makers to break up large financial institutions.”

Reuters “A need to break up big banks is one of the several lessons policy makers should have learned from the financial crisis that have either been ignored or forgotten, according to Phil Angelides, who chaired the congressionally appointed Financial Crisis Inquiry Commission.”

Bloomberg “The Dodd-Frank Wall Street reform act makes a promise: no more bailouts. It’s hard to find fault with the politics of this promise, and its economics seem promising as well. In theory, a financial firm without a state backstop will be more responsible. Unfortunately, this may not be what actually happens.”

 

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
RECENT
SHOWS
Jun 9, 2016

Newly-minted college graduates on the job hunt. We’ll look at who’s hiring, starting salaries, and strategies for landing that first job.

 
Jun 9, 2016

Europe, India and China, are taking on American tech giants over privacy, monopolies, and more. We’ll look at the global technology pushback against the U.S.A.

On Point Blog
On Point Blog
Jessica Valenti: ‘Objectification Is About Dehumanizing People’
Wednesday, Jun 8, 2016

“There is some power in laying claim to the word victim.” — Jessica Valenti on the Stanford sexual assault case, and the importance of language.

More »
Comment
 
Why The ‘Roots’ Remake Matters (And What Stays The Same)
Tuesday, Jun 7, 2016

The recent remake of “Roots” on the History Channel makes important changes, Morehouse College’s Stephane Dunn argues. But it also holds true to the original story.

More »
Comment
 
Former Trump Advisor Roger Stone: ‘Trump’s Going To Be The Next President’
Monday, Jun 6, 2016

Longtime political consultant Roger Stone apologizes for his “two martini tweets,” even as he predicts Donald Trump will be the next U.S. president.

More »
Comment