ast week Citigroup finally reached a settlement with the U.S. Department of Justice over shoddy mortgage securities transactions in the years immediately before the 2008–2009 financial crisis. The bank agreed to pay $7 billion. That follows a $13 billion settlement paid last year by JPMorgan Chase & Co., and comes just as Bank of America is negotiating a settlement with the Justice Department sure to top $12 billion.
Read moreWhat Jamie Dimon’s Senate Testimony Got Right
The JPMorgan Chase CEO is more correct than we’d like to believe about the impossibility of regulating risk.
Read moreJPMorgan Says Bye Bye Buyback
Big business is making big news. Newsweek & The Daily Beast’s John Avlon and Zachary Karabell on JPMorgan’s multi-billion dollar mistake, why Facebook’s IPO was actually a huge success and the fallout resume padding that led to the demise of Yahoo’s CEO.
Read moreZACHARY KARABELL ON JPMORGAN CHASE'S RISKY BUSINESS
Question: When does risk aversion become risky behavior? Answer: when you are a large financial institution in today’s world, especially a behemoth bank like JPMorgan Chase, attempting to navigate both labyrinthine regulations and shareholder demand for endless profit.
Read moreJPMorgan’s $2 Billion Loss Fueled by Efforts to Avoid Risk
In a surprising announcement late yesterday afternoon, JPMorganChase, one of the largest banks in the world, announced that it had suffered massive losses in an internal fund meant to shield the bank from … massive losses. CEO Jamie Dimon, who had until now steered his behemoth institution with
Read moreWhat Market Panic? Halcyon Days for Silicon Valley
It’s no secret that the media world is disproportionately represented by denizens of the East Coast, which also overlaps with the corridors of politics and finance. For the past years, these circles have been focused on financial crises, the fate of the euro zone, high unemployment, government debt, unbridled political partisanship, nuclear proliferation, and successive waves of market panic.
Read moreThe End of Wall Street's Big Payday
On Sept. 15, a 31-year-old UBS trader in London was arrested for fraudulently attempting to hide “rogue” trades that led to at least $2 billion in losses for the Swiss bank. How could a large financial institution, Swiss no less, let its risk controls slip so much that a person in a relatively junior position could lose so much of the bank’s capital?
Read moreCONSUMERS ARE BETTER OFF THAN YOU THINK
As the equity markets take another huge step downward, it's likely that American consumers will continue to be shellshocked by their loss of wealth in both homes and stocks. Yet the relentless negativity about the state of the American consumer may well be overblown.
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