Anybody need still another argument for reviving the old Glass-Steagall Act (1933-99), with its salutary separation between commercial and investment banking? If so, JPMorgan Chase has just provided one. A big one.
The country's largest bank now has admitted losing $2 billion going on $3 billion through its investment games, aka credit default swaps.
When the problem was first spotted by wire services like Bloomberg and the Wall Street Journal last month, the bank's hot-shot CEO, James ("King of Wall Street") Dimon dismissed the story as "a complete tempest in a teapot."
Now it turns out to be a $2 billion...