Excellent post again by Simon Johnson today regarding the losses and situation at JPMorgan Chase: JP Morgan Debacle Reveals Fatal Flaw In Federal Reserve Thinking.
"The lessons from JP Morgan’s losses are simple. Such banks have become too large and complex for management to control what is going on. The breakdown in internal governance is profound. The breakdown in external corporate governance is also complete — in any other industry, when faced with large losses incurred in such a haphazard way and under his direct personal supervision, the CEO would resign. No doubt Jamie Dimon will remain in place."
We simply must have legislation that places a maximum size on all banks, or we will face a catastrophe that makes 2008 look like a picnic on a nice day.