JP Morgan Chase

Obama's New Bank Tax
January 14, 2010

Today the Obama administration unveils a new tax on large banks. It's the (partial) answer to a policy dilemma and a political dilemma that were dying to be solved together. The policy dilemma is that the administration is having trouble crafting a long-term fix to the financial crisis. Large financial institutions have an inherent tendency to threaten the entire economy. Those institutions know that if they make huge risky investments, they get to keep all the upside if they pay off.

Jamie Dimon Vs. Larry Summers
July 19, 2009

Jamie Dimon has won big. JP Morgan Chase now stands alone, both in financial position and political clout--including special access to the White House and, as explained in today's NYT, Rahm Emanuel's likely attendance at his next board meeting tomorrow.  Dimon's semiotics have been brilliant throughout the crisis--it wasn't his fault, he was forced to take TARP money, and--in phrasing that will make the history books--bankers should not be "vilified." But now he has a problem. Larry Summers forcefully stated Friday that high recent profit levels for big banks (i.e., JPMorgan and Goldman) are b

Monopoly Money
March 19, 2008

WASHINGTON--The Federal Reserve recently announced new measures to tackle the current financial crisis. They include helping J.P. Morgan Chase acquire Bear Stearns, lowering the discount rate and offering short-term loans to about 20 investment banks-- and they came only days after the government said it would inject $200 billion into the financial system. These are the latest steps taken by the U.S. government to solve a problem created in large measure by the government itself.