Jamie Dimon Endorses Letting Giant Banks Fail, Firing Incompetent Executives and Clawing Back Executive Compensation

Jamie Dimon Endorses Letting Giant Banks Fail, Firing Incompetent Executives and Clawing Back Executive Compensation

by WashingtonsBlog

But Bill Black Demolishes Dimon’s Fake PR Campaign

Jamie Dimon told Meet the Press:

We support getting rid of “too big to fail.” And it’s very important that—and this is not—this is a—not going to even remotely—we’re going to make money, we’ve got tons of capital. But we support “too big to fail.” We want the government to be able to take down a big bank like JPMorgan, and it can be done. We think Dodd-Frank, which we supported parts of, gave the FDIC the authority to take down a big bank, and when it happens, I believe compensation should be clawed back, the board should be fired, the equity should be wiped out, and the bank should be dismantled, and the name should be buried in disgrace. That’s what I believe. We need to put that back in the system, and we’ll work with the regulators to try to get that back in the system.

Of course, letting insolvent and poorly managed banks fail, firing executives, wiping out shareholders, and clawing back executive compensation is just what the doctor ordered … in 2008. If that had happened, then we would be through the economic crisis by now.