PLEDGE NOW
No More Too Big To Fail?

With JP Morgan’s Jamie Dimon on the hot seat, we look at the loud call to fix American banking by breaking up the biggest banks.

People arrive at JPMorgan Chase headquarters in New York Monday, May 14, 2012.(AP)

People arrive at JPMorgan Chase headquarters in New York Monday, May 14, 2012.(AP)

JP Morgan Chase chief Jamie Dimon in the hot seat today before Congress, apologizing for the high-risk trading fiasco that cost his bank more than $2 billion.  A lot of serious players don’t want an apology.

They want Dimon’s bank broken up.  And not just JP Morgan.  Citigroup.  Bank of America.  Wells Fargo.  And watch out Morgan Stanley.  Goldman Sachs.  They’ve been called too big to fail, too big to manage, too big to regulate, too complex to understand, too risky to exist.  And when they shake, you pay.

This hour, On Point:  the call to break up – make smaller – America’s biggest banks.

-Tom Ashbrook

Guests

Nela Richardson, senior economics analyst for Bloomberg Government.

James Kwak, professor at the University of Connecticut Law School. He with economist Simon Johnson – at “The Baseline Scenario.”

Peter Wallison, fellow in financial policy studies at the American Enterprise Institute.

C-Segment: Temple Grandin Commencement Address

You can find a transcript here.

From Tom’s Reading List

Wall Street Journal “Lawmakers are set to grill J.P. Morgan Chase & Co. chief Jamie Dimon on Wednesday over how the largest U.S. bank was able to retain losses of more than $2 billion from credit derivatives trades and whether the problems it highlights are enough to push policy-makers to break up large financial institutions.”

Reuters “A need to break up big banks is one of the several lessons policy makers should have learned from the financial crisis that have either been ignored or forgotten, according to Phil Angelides, who chaired the congressionally appointed Financial Crisis Inquiry Commission.”

Bloomberg “The Dodd-Frank Wall Street reform act makes a promise: no more bailouts. It’s hard to find fault with the politics of this promise, and its economics seem promising as well. In theory, a financial firm without a state backstop will be more responsible. Unfortunately, this may not be what actually happens.”

 

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
May 27, 2015
Ousted Egyptian President Mohammed Morsi raises his hands as he sits behind glass in a courtroom, in a converted lecture hall in the national police academy in an eastern Cairo suburb, Egypt, Saturday, May 16, 2015. (AP)

Sentenced to death in Egypt for espionage, respected academic Emad Shahin joins us with a big take on Egypt, ISIS and America’s response.

May 27, 2015
The logo from the new film, "(Dis)Honesty," which is also the logo for the Dishonesty Project. (The Dishonesty Project)

Are we natural born liars? Is it human to lie? Inside the new documentary, “(Dis)Honesty”.

RECENT
SHOWS
May 26, 2015
The saola is an exceedingly rare mammal found in the mountains of Southeast Asia. (Wikicommons)

Endangered species and the search for one of the world’s rarest creatures deep into the wilds of central Laos.

 
May 26, 2015
Blogger and activist Pamela Geller speaks at a conference she organized entitled “Stop Islamization of America,” in New York on Sept. 11, 2012. (AP)

Two new books on free speech–one by a former New York Times correspondent, the other a Fox News contributor. They don’t see eye to eye—and tell us why.

On Point Blog
On Point Blog
A Former Bike Gang Member Explains "The Life"
Tuesday, May 19, 2015

Larry called in from Lawrenceburg, KY and told us he was once a member of the Pagan’s Motorcycle Club, a mid-Atlantic biker gang. He didn’t sugar coat the facts as he explained the draw of the brotherhood and what makes the outlaw motorcycle corner the underworld go round.

More »
Comment
 
Our Week In The Web: May 15, 2015
Friday, May 15, 2015

We cancel a few hours and suddenly all of you get convinced of a global radio conspiracy! Plus, dragon zoos.

More »
1 Comment
 
Caller: ‘It Doesn’t Always Turn Out Okay’
Wednesday, May 13, 2015

One caller shares her own story of an extremely premature birth. Her daughter, born at 22 1/2 weeks in 2012, was taken off life support after seven days.

More »
Comment