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	<title>SwamplandCategory: Banks &#124; Swampland &#124; TIME.com</title>
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		<title>SwamplandCategory: Banks &#124; Swampland &#124; TIME.com</title>
		<link>http://swampland.time.com</link>
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		<title>Why the Banks Should Fear Mary Jo White</title>
		<link>http://swampland.time.com/2013/01/25/why-the-banks-should-fear-mary-jo-white/</link>
		<comments>http://swampland.time.com/2013/01/25/why-the-banks-should-fear-mary-jo-white/#comments</comments>
		<pubDate>Fri, 25 Jan 2013 16:17:04 +0000</pubDate>
		<dc:creator>Massimo Calabresi</dc:creator>
				<category><![CDATA[Banks]]></category>

		<guid isPermaLink="false">http://swampland.time.com/?p=86237</guid>
		<description><![CDATA[In the binary world of wing-nut commentators, everything is personal. What matters most to ideologues is individuals taking absolute positions in a battle of good versus evil: you’re either with us or you’re against us, and professional association is moral allegiance, regardless of the circumstances. So it’s not surprising to see the left up in arms over the nomination of former Manhattan U.S. Attorney Mary Jo White by President Barack Obama to head the SEC. White had a long and widely-praised career as a public prosecutor and then went to private practice. There she represented big banks and, among others, Time Warner, the parent company of Time Magazine, in a suit brought by Donald Trump that was eventually dismissed. To summarize the case against White: because she represented financial titans including Morgan Stanley and Bank of America, she’s morally tainted, sympathetic to the plight of big banks, and inevitably inclined to lean in their favor. In the real world, where politics, economics and the law are much bigger than any one player, those same big banks should be scared witless this morning at the prospect of having Mary Jo White as a top enforcer. First, she has a reputation as one of the toughest prosecutors in the country. Lightweights don’t run the U.S. Attorney’s office for the Southern District of New York, and during her nine years in charge her list of busts was prodigious. Second, her ethical reputation is unchallenged, despite the sudden urge to damn her by association. &#8220;Mary Jo has an impeccable reputation for integrity and professionalism,” says William Burck, who worked for her in the Manhattan U.S. attorney’s office and is now co-managing partner of the DC office of the firm Quinn Emanuel Urquhart &#38; Sullivan. Most important, she’s seen the banks naked. As the top lawyer for Bank of America in a fraud litigation brought by then-New York Attorney General Andrew Cuomo, she came to know everything about their books, their vulnerabilities and where and whether they crossed the line “Her time representing big banks<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=swampland.time.com&#038;blog=5284847&#038;post=86237&#038;subd=timeswampland&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Banks</primary_category><primary_category_link>http://swampland.time.com/category/domestic-policy-2/banks-domestic-policy/</primary_category_link><featured_image>http://timeswampland.files.wordpress.com/2013/01/mary-jo-white.jpg?w=200</featured_image>
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			<media:title type="html">Mary Jo White</media:title>
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			<media:title type="html">calabresim</media:title>
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		<title>JPMorgan&#8217;s Other Loss: A Voice for Regulatory Restraint</title>
		<link>http://swampland.time.com/2012/05/14/the-fall-of-jamie-dimon-washingtons-deregulation-squad-loses-credibility/</link>
		<comments>http://swampland.time.com/2012/05/14/the-fall-of-jamie-dimon-washingtons-deregulation-squad-loses-credibility/#comments</comments>
		<pubDate>Mon, 14 May 2012 10:45:57 +0000</pubDate>
		<dc:creator>Adam Sorensen</dc:creator>
				<category><![CDATA[Banks]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[dodd-frank]]></category>
		<category><![CDATA[jamie dimon]]></category>
		<category><![CDATA[jpmorgan]]></category>

		<guid isPermaLink="false">http://swampland.time.com/?p=70862</guid>
		<description><![CDATA[The failed bet that cost JPMorgan Chase $2 billion and plunged the bank&#8217;s stock by more than 9% on May 11 has rattled the financial sector. This wasn&#8217;t the case of a vigilante trader who struck out on his own. It was a top executive at the shining steel sentinel of the U.S. investment-banking industry, vested with the full confidence of his bosses. And they all screwed up. As JPMorgan CEO Jamie Dimon put it on May 13 on Meet the Press, “We took far too much risk. The strategy we had was badly vetted, it was badly monitored — it should never have happened.&#8221; It&#8217;s still unclear how the failed bet will hurt JPMorgan&#8217;s balance sheet. But while the loss doesn&#8217;t threaten the bank&#8217;s stability, it has irreparably damaged one of the financial industry&#8217;s most valuable assets: the credibility of Dimon, who for the past two years has been Big Finance&#8217;s manicured right hand in Washington, slapping away the regulatory feelers of the federal government. (LIST: Top 10 Biggest Trading Losses in History) As lawmakers drew up the 2010 Dodd-Frank financial-reform bill and regulators subsequently labored to craft rules to enforce it, Dimon was everywhere in Washington, counseling restraint. He told the Chamber of Commerce that new rules requiring firms to hold more safe capital in reserve could be the “nail in our coffin of big American banks.” He told reporters that stricter international guidelines were “blatantly anti-American” and that Paul Volcker, the former Fed chief who championed an eponymous rule prohibiting banks from making for-profit bets with their own money, &#8220;doesn’t understand capital markets.” The Commodity Futures Trading Commission&#8217;s approach to regulating derivatives, the same type of financial instrument that detonated catastrophically at AIG and just lost JPMorgan $2 billion, &#8220;would damage America,&#8221; Dimon said. Dimon backed up his talk with money and influence. In 2010 and 2011, JPMorgan spent $15 million on lobbying, more than most other banks and nearly as much as the industry&#8217;s umbrella group, the American Banking Association. Dimon met with top officials like<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=swampland.time.com&#038;blog=5284847&#038;post=70862&#038;subd=timeswampland&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Financial Regulation</primary_category><primary_category_link>http://swampland.time.com/category/domestic-policy-2/financial-regulation/</primary_category_link><featured_image>http://timeswampland.files.wordpress.com/2012/05/jpmorgan-dimon.jpg?w=200</featured_image>
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			<media:title type="html">JPMorgan-dimon</media:title>
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			<media:title type="html">Adam Sorensen</media:title>
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		<title>Jamie Dimon&#8217;s Worst Nightmare</title>
		<link>http://swampland.time.com/2012/05/13/jamie-dimons-worst-nightmare/</link>
		<comments>http://swampland.time.com/2012/05/13/jamie-dimons-worst-nightmare/#comments</comments>
		<pubDate>Sun, 13 May 2012 14:14:46 +0000</pubDate>
		<dc:creator>Joe Klein</dc:creator>
				<category><![CDATA[Banks]]></category>

		<guid isPermaLink="false">http://swampland.time.com/?p=70848</guid>
		<description><![CDATA[Over at the conservative American Enterprise Institute blog, James Pethokoukis has an idea that could be a total game-changer for Mitt Romney: he should come out for breaking up the five biggest banks, which control about 70% of all U.S. assets. This would be a move supported by discerning liberals and conservatives&#8211;as I wrote yesterday, Jon Huntsman proposed it during the primary campaign; Paul Volcker favors it, too. And out in America, where Big Wall Street is about as popular as Big Government, this would be very popular with the independent voters who will decide this election&#8230;and it would flank President Obama, whose failure to either reform the big banks or indict a single banker for the fraud that led to the Great Recession has been a real disappointment. It would certainly change the nature of the conversation, return the debate to the economic issues that Romney wants to run on&#8211;and, for once, establish him as a creative thinker. Which is, I suppose, precisely why he won&#8217;t do it. Update: Several readers have raised the question of how you could break up the big banks. It&#8217;s a terrific question&#8211;and I&#8217;m not sure that I know the best answer. I do know one thing, though: It would have to be done via legislation, rather than regulation. Huntsman&#8217;s plan would impose a confiscatory fee on banks over a certain size, forcing them to divest. Former Delaware Senator Ted Kaufman and others favor a more straightforward approach: an updated version of the Glass-Steagall law which separated commercial banking from investment banking, and kept the animal passions of Wall Street under control from the Great Depression to the late 1990s, when it was supplanted by Bill Clinton&#8217;s unfortunate deregulation. There may be other ways as well&#8211;and none of them would have an easy go of it in the Congress, which has been bought and paid for&#8211;in the past, at least&#8211;by the overwhelming power of the banking lobby. But with Obama on the record opposed to breaking up the big banks&#8211;and favoring the Rube Goldberg Dodd-Frank<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=swampland.time.com&#038;blog=5284847&#038;post=70848&#038;subd=timeswampland&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Banks</primary_category><primary_category_link>http://swampland.time.com/category/domestic-policy-2/banks-domestic-policy/</primary_category_link><featured_image>http://timeswampland.files.wordpress.com/2012/05/jpmorgan-dimon.jpg?w=200</featured_image>
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			<media:title type="html">JPMorgan-dimon</media:title>
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			<media:title type="html">jklein1271</media:title>
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		<title>Jamie Dimon&#8217;s Moral Hazard</title>
		<link>http://swampland.time.com/2012/05/12/jamie-dimons-moral-hazard/</link>
		<comments>http://swampland.time.com/2012/05/12/jamie-dimons-moral-hazard/#comments</comments>
		<pubDate>Sat, 12 May 2012 13:44:06 +0000</pubDate>
		<dc:creator>Joe Klein</dc:creator>
				<category><![CDATA[Banks]]></category>

		<guid isPermaLink="false">http://swampland.time.com/?p=70842</guid>
		<description><![CDATA[Jamie Dimon of JPMorganChase once was Barack Obama&#8217;s favorite banker, a big backer of the President&#8217;s 2008 campaign. But he&#8217;s been blowing hard and often when it turned out that Obama was attempting to&#8211;gasp!&#8211;regulate the banking industry after its wanton recklessness caused the stock market, and the economy, to crash. Dimon has gone on to attack Paul Volcker, a true voice of reason, for proposing ways to limit the activities of the big banks. And now, in a lovely little trick of fate, JPMorganChase has lost $2 billion in the very sort of proprietary casino gambling that led to the 2008 crash. I&#8217;m happy that Dimon is getting a taste of comeuppance, but schadenfreude is hardly a sufficient reaction here. What if the loss had been larger? What if JPMorganChase were now teetering on the brink of failure? Well, we would have to bail it out, of course. The financial system simply could not handle the collapse of one of its six largest institutions of higher earning; the economy would once again crash. The term of art when a bank reaches the size where it is too big to fail is moral hazard. That means bankers will tend to act less responsibly if they know the government won&#8217;t allow them to go under, if there are no real risks in risk. I&#8217;ve written before that Barack Obama let the bankers off the hook too easily. Jon Huntsman&#8217;s plan to force the six biggest banks to dismember themselves by imposing large fees according to size was a good idea that was ignored because Huntsman was ignored. And Obama&#8217;s problem is compounded by the fact that Dodd-Frank, the regulatory reform legislation passed last year, is a spotty proposition&#8211;some very good provisions attended by some very bad provisions (making small banks play by the same rules as the big banks, even though the 2008 crash wasn&#8217;t caused by small banks), and completed by a disastrously inept effort to limit the gambling abilities of the biggest banks. Moral hazard may be the most important issue<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=swampland.time.com&#038;blog=5284847&#038;post=70842&#038;subd=timeswampland&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Banks</primary_category><primary_category_link>http://swampland.time.com/category/domestic-policy-2/banks-domestic-policy/</primary_category_link>
		<media:content url="http://2.gravatar.com/avatar/82d9b09d6bf4a8d7cc755c73ad7a3ae5?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">jklein1271</media:title>
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		<title>Vexed by Securitization Suit, Banks Pull Out of Mortgage Fraud Settlement Meeting</title>
		<link>http://swampland.time.com/2011/09/08/vexed-by-securitization-suit-banks-pull-out-of-mortgage-fraud-settlement-meeting/</link>
		<comments>http://swampland.time.com/2011/09/08/vexed-by-securitization-suit-banks-pull-out-of-mortgage-fraud-settlement-meeting/#comments</comments>
		<pubDate>Thu, 08 Sep 2011 13:00:20 +0000</pubDate>
		<dc:creator>Massimo Calabresi</dc:creator>
				<category><![CDATA[Banks]]></category>

		<guid isPermaLink="false">http://swampland.time.com/?p=55472</guid>
		<description><![CDATA[The five biggest mortgage servicers have cancelled a planned negotiating session with representatives of the 50 State Attorneys General in apparent protest over a federal regulator filing suit against them, a source familiar with the matter tells TIME. The banks canceled the meeting on Tuesday afternoon in protest over the announcement last Friday that the Federal Housing Finance Agency would bring a broad case against 17 firms, including those in talks with the State AGs. The FHFA, which oversees mortgage giants Fannie Mae and Freddie Mac, alleges the firms violated securities law by misrepresenting the value of bundles of high-risk mortgages they sold. FHFA did not say how much the case might be worth, but outside analysts have said it could potentially produce billions of dollars in compensatory damages from the firms. The big mortgage servicers, including Bank of America, Citigroup, JP Morgan and others, were scheduled to meet late this week with the State AG negotiators as part of a separate investigation. Those talks are aimed at a settlement that will address standards for handling past and future mortgages, massive penalties (reportedly as high as $20 billion), and a release from legal liability for the servicers in other mortgage matters. The State AGs did not foresee releasing the banks from liability for the kinds of violations alleged in the FHFA suit. The AGs are focused on the relationship between the banks and borrowers, while FHFA is focused on the bundled, or securitized, mortgages sold by the 17 firms. The big banks apparently were hoping they would be exempted from suits alleging they fraudulently sold bogus mortgages to investors, knowing they were less safe than advertised. The State AGs, led by Iowa AG Tom Miller, have been desperately trying to finalize their settlement for months. The FHFA suit only complicates that process. Spokespeople for several of the large mortgage servicing banks did not respond to requests for comment on the canceled meeting.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=swampland.time.com&#038;blog=5284847&#038;post=55472&#038;subd=timeswampland&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Banks</primary_category><primary_category_link>http://swampland.time.com/category/domestic-policy-2/banks-domestic-policy/</primary_category_link>
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			<media:title type="html">calabresim</media:title>
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