Tuesday, September 27, 2011

Dimon Versus Carney: Round 1

Jamie "The Jab" Dimon
From The National Post:  "Tempers apparently were running high when global bankers met in Washington over the weekend.  According to the Financial Times, Jamie Dimon of JPMorgan Chase launched a tirade at Mark Carney, Bank of Canada governor, in a closed-door meeting in front of more than two dozen bankers and finance officials.  Mr. Dimon’s beef was new capital rules which will force all banks to hold 7% core capital against risk-weighted assets, which Dimon says discriminate against U.S. banks.  The atmosphere was so bad after the meeting that Lloyd Blankfein, chief executive of Goldman Sachs and head of the Financial Services Forum bankers’ group which arranged the session, emailed the central banker to try to smooth relations, people familiar with the matter told the Financial Times."  Apparently "The Toughest Guy On Wall Street" wants to keep running his bank like a casino even after The Meltdown, and called the new rules "anti-American".  (He later admitted that the term is inflammatory but gets people's attention so he'll keep using it.)  Sorry tuff guy, but leaving the odds tilted in favour of Wall Street hotshots who owe their big juicy bonuses to taxpayer bailouts of their casinos is just downright unwise, not anti-American.  And sound bites can be dangerous - losing your cool when sparring with (arguably) America's best buddy just got you an international black eye.

The Good News:  Stay tuned for Round 2.