JPMorgan Chase, the nation’s largest bank, is under fire after losing at
least $2 billion in derivatives trading it was warned carried high
risk. The loss has renewed calls for tougher regulation of Wall Street,
with critics saying JPMorgan could have avoided it under regulations the
bank opposed. We’re joined by former financial regulator, white-collar
criminologist, and University of Missouri-Kansas City Professor William
Black, author of "The Best Way to Rob a Bank is to Own One." Black says
JPMorgan’s latest woes stem from the flaws endemic to "too big too
fail." "Allowing [banks] to be this big, even conservative economists
call this crony capitalism," Black says. "The only way this can work is
to shrink the systemically dangerous institutions — this is the 20
largest banks in the United States — down to the point that they no
longer pose a systemic risk, they are no longer too big to fail, and
therefore, they will no longer have this implicit federal subsidy that
completely distorts competition [and] ... destroys democracy, because
these giant institutions have so much political power." Video
Source: Democracy Now!
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