Saturday, June 16, 2012

Jamie Dimon: Regulator Extraordinaire

Jamie Dimon is seen by a lot of people as the  "smart guy" of Wall Street. Personally, I'm not sure what to think of him. But anyways, quick post about this because I was floored when I read about it. When he was testifying in front of the Senate Banking Committee this week, many Republicans were asking him for advice on how they should regulate banks. On the face of it, okay, I guess I can see how they might ask him because he knows the banking system well. But seriously? Listen to these questions:
“What would you do to make our system safer?” Sen. Bob Corker (R-Tenn.) asked Dimon.
“What should the function of regulators be?” asked Sen. Mike Crapo (R-Ida.).
“How much have regulation costs increased?” asked Sen. Mike Johanns (R-Neb.).
“We’re honestly looking for some ideas as we look over [Dodd-Frank] in the next year,” Sen. Jim DeMint (R-S.C.) told him.
I don't know, is it just me, or is this practically the definition of regulatory capture? They're asking the head of a bank what he thinks is the best way to regulate banks. You know what? We should just cut to the chase and appoint him chairman of the New York Fed. Then he'll regulate all the banks good 'n' proper.

How asinine.