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Bank Chairman Jamie Dimon says 'egregious mistakes' were made

10:30 PM, May 10, 2012   |    comments
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WASHINGTON (WUSA) -- Four years after the nation's economy was brought to its knees in part by losses from risky investments made by the major Wall Street banks, JP Morgan Chase announced that it lost two billion dollars from similar investments in the past six weeks alone.

In a conference call after the market closed on Thursday, JP Morgan Chairman Jamie Dimon said, "There were many errors, sloppiness and bad judgement."

Peter Morici wholeheartedly agrees.  A business professor at the University of Maryland, Morici compared JP Morgan's chairman to a local bookie.

"The difference between Jamie Dimon and the guy making book on the corner, on the horses, is Jamie wears a good suit," Morici said.

"He's not interested in making loans, he's interested in taking your deposits and gambling with them. He just gambled and lost."

Morici said the $2 billion in losses were not just bad but embarrassing for JP Morgan, whose chairman is an outspoken critic of the Volker Rule, which aims to limit banks from making risky investments with their own money -- exactly what happened here.

"The Volker Rule isn't a good idea, but it's going to be really tough for Mr. Dimon to argue against it now," Morici said.

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