© Keith Bedford/ReutersJamie Dimon, chairman and chief executive of JP Morgan Chase and Co, whose bank announced a massive trading loss of $2 billion, and counting, on Thursday.
Wall Street probably is wishing it never heard of the "Dimon Principle."
Major banks hoping to thwart calls for tighter banking restrictions were dealt a blow by news that JPMorgan Chase lost $2 billion in a trading blunder that proponents of new rules say more stringent regulation would curtail.
The spectacular trading meltdown came despite assurances from bankers that existing layers of regulations, internal safeguards and proper oversight are adequate to prevent such disasters. Those critical mechanisms failed to surface a sprawling series of bad bets that reverberated through the global financial markets.
JPMorgan's shares were slammed Friday after Jamie Dimon, CEO of the largest bank in the U.S., said in a conference call late Thursday that his bank's trading losses resulted from a 'flawed' hedging strategy that was "poorly constructed, poorly reviewed, poorly executed, and poorly monitored."
Dimon has been a vocal opponent of a regulation that would restrict certain types of risk-taking by banks, aka the Volcker rule, proposed in the aftermath of the financial crisis by former Federal Reserve Board Chairman Paul Volcker.
Comment: The global push towards internet control has no greater ally than internet pornography. All healthy people would agree, with one third of boys now addicted to soul-crushing porn, that blocking children's access to it could be a good plan or at least a move in the right direction.
But do we really think governments give a damn what our children are watching online?
Beyond the Dutroux Affair: The reality of protected child abuse and snuff networks in a world ruled by psychopaths