The big headline today is still JPMorgan Chase and it's huge trading losses. Clearly this is a black eye for JPM but the question goes to what longer term consequences the incident will have. I could see JPM taking a more defensive stance like Goldman has done in the past. But, JPMorgan head Janie Dimon he has been out over and over owning up to the mistake and inviting regulators to look over the books. If you want to save your job, that's really the best tack to take on this one. I think Dimon has built up enough of a reputation as a good leader that he is safe for now.
The real question goes to damage to the franchise and bank regulation in the US. Since Dimon has been unrepentant in lobbying for regulatory loopholes, likely this will have a very ugly backlash on the industry....
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.