Re: JP Morgan Chase Execs Vaporize $2B (942134) | |||
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Re: JP Morgan Chase Execs Vaporize $2B |
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Posted by 3-9 on Wed May 16 14:50:21 2012, in response to Re: JP Morgan Chase Execs Vaporize $2B, posted by Charles G on Wed May 16 02:56:22 2012. If somebody writes a risk that is beyond their level or scope of authority, they are terminated. There is almost no discussion beyond confirming that we had clearly set forth what their limits were. It doesn't matter whether the risk actually hits or not, or even if we can buy protection to mitigate that risk.In the financial industry today, outsized risk taking is fully accepted unless the risk goes bad. It is exactly that kind of thinking -- "when you're on a roll..." -- that gamblers use. I don't see government's role being to stake gamblers. Unfortunately, there is extremely heavy lobbying to stop regulation which would prevent this sort of risk-building. |