I have gotten hundreds of emails from community bankers commenting on JPMorgan Chase’s $2 billion trading blunder. Below is just one example of an email I received from one of our good member bankers. I think he nailed it.
As you have said…plain and simple—they are too big to manage and too big to regulate. If management doesn’t know and understand what is going on, how on earth could the regulators know and understand what is going on? These big entities should be treated as venture capital companies funded by expensive capital looking for high risk and high rewards…not as companies insured by the FDIC and ultimately guaranteed by the U.S. government.