Expert: JP Morgan Critics May Be Off Base
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Financial crisis expert James Angel says Congress members tried to shame JPMorgan Chase CEO Jamie Dimon during his testimony about the company's $2 billion trading loss. (June 13)


(James Angel, Georgetown University, Financial Crisis Expert)("Congress likes to show who's in charge. It shows they're paying attention to risk in the financial sector. As far as compensation goes, this will clearly hit Mr. Dimon in the bottom line and that's going to affect his pay and his bonus. Given that part of his compensation is stock options, the fact that JP Morgan stock has dropped as a result certainly hurst Mr. Dimon financially. Whether the board will take additional measures remains to be seen.//His original reaction to the reports of accessive risk taking in the London office were definitely//I think this is a proprietary issue which could occur elsewhere and I'm sure that every big bank is looking at their risk management procedures to make sure that it doesn't happen to them.//The proper roll for Congress is to set-up an intelligent regulatory structure that can understand what's going on. Instead of trying to micro-manage the details of bank risk regulation. They should set-up a regulatory structure of regulators who know what's going on and who can craft the appropriate rules. The problem with the Volcker Rule is that it's both too vague and too expansive and and nobody really understands what it is.")(****END****) VIDEO SOURCE: AP-----------------------VIDEO RESTRICTIONS: None----------------------------------