Moody’s gives Jaimie Dimon and his baking frat brothers a black eye

Moody’s cut down a notch or two crediting ratings of 15 big banks, including JPMorgan and Goldman Sachs. Did JPM’s loss of us$2-5 billion dollar push Moody’s change of heart, in spite of the credit rating agencies suspect past in abetting Wall Street in fostering the 2008 global recession? Partially. The growing exposure of 11 foreign banks among the downgraded 15 also brought panic, in part. Jaime Dimon and his banking fraternity brothers can no longer get away with an oophs, we made a mistake, it won’t happen again excuse. If anything Dimon and his banking cohorts proved that regulation of the banking industry with its obvious weaknesses and sharp and corrupt practices is very much on today’s agenda for reform. Their heels in the concrete tack against government interference shows the banks’ strategy for what it is: a scam. If anything these anti government banks are sucking the government’s teat whilst growing fat on the back of taxpayers who are footing the almost impossible bill of the recession the Wall Streets around the world, to claw the economy our of doldrums and a relapse into deeper recession (some say ‘it’s a depression!’) Kicking and screaming these very bank will have to boost reserves towards the 8 percent mark, they fought hard to water down to 3 at the time of the 2008 crash. Not to put a fine point to it, GuamDiary suggests reading the ‘Financial Times’ Gillian Tett’s ‘Fool’s Gold’, to see how the banks got away with highway robbery. Has the regulatory worm turned? Perhaps. But one thing is sure, JPM’s billion dollar bad bet has hit a panic button to save capitalism from itself.

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