Spawn of Evil vs. Spawn of Evil

 Anyone interested in the probability that the financial system will fix itself need only to determine whose world view will prevail, Jamie Dimon’s or Mark Carney’s.

Jamie Dimon is the head of JPMorgan and fighting tooth and nail against financial reform. Normally us finance-types pride ourselves on being logical in our arguments. Jamie Dimon’s crusade against financial reform has gone to new heights of irrationality and flights of fancy with the his desire to be the arbiter of what’s American and un-American.

Has he learned nothing from the Tea Party and the Bush era?

Thankfully, Bank of Canada Governor Mark Carney reminds us that even bankers from Goldman aren’t necessarily the spawn of evil with the following speech.

Based on the current challenging economic outlook, some argue that we should revisit the pace and breadth of financial reforms. This position is based on two questionable propositions.

The first is that the prospect of financial reforms is contributing to current economic weakness. A corollary is that delayed implementation of the Basel III capital rules, for example, will somehow strengthen the recovery…

If some institutions feel pressure today, it is because they have done too little for too long, rather than because they are being asked to do too much, too soon…

Finally, the analysis assumes that all of these reform efforts are for naught as it includes none of the benefits. Given the recent experience, no one would argue that financial crises are without costs, and only the most jaded would argue that their probability and severity cannot be reduced…

To conclude, critics of reform generally succumb to three world-weary arguments:

  • any rule will be arbitraged;
  • any insurance will promote greater risk taking; and
  • there will always be financial crises.

Such fatalism should be rejected. In no other aspect of human endeavour do men and women not strive to learn and to improve.


Its not a terribly long speech. I recommend reading it in its entirety.

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2 Responses to Spawn of Evil vs. Spawn of Evil

  1. Pingback: Bankers are not your Friends | Rated Zed

  2. Pingback: Theft by Mother (Country) | Rated Zed

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