It's a story about a major company ****ing up. It's only a story because it was a bank.
In 2008 the collapse of one large financial institution created a domino effect that took down the entire financial system. Sure that led to bailouts...but more fundamentally it led to the worst recession we've seen in 2 or 3 generations, one which we're still feeling the effects of. People lost their jobs, their homes, saw their 401ks tank, saw life-savings funds depleted...and those were just the immediate effects. (How many people who lost their jobs also lost their healthcare insurance at the same time, soon found themselves sick, and then couldn't pay for their or their families medical bills?)
I'm fairly certain a logistics manager at Hersey screwing up wouldn't do the same thing.
Moreover, the story is a tell as to where Wall Street's head is, which is to say the culture at the big banks hasn't fundamentally changed post-2008. And that's doubly scary since the remediation tools at our disposal in 2008 have been pretty much used up, both financially and politically.
But JP Morgan isn't failing. A $2 billion loss in the grand scheme of a $5 billion profit.
But I will agree that yeah, the fear it generated shows that they haven't fixed the "too big to fail" problem.
//And I would debate the 08 recession and the late 70's recession in terms of which was worse
JPMorgan says traders may have tried to hide big loss
Banking is essentially a global public utility at this point. A single failure of a big bank can bring down the world economy and there are legitimate concerns that the way these institutions are run is haphazard, irresponsible, and dishonest. The LIBOR scandal, which will likely spread, reenforces this. If a power or water company was run this way, we would be outraged, as we should be about the banks.
This is nothing like a mistake in a chocolate factory.
Of course there is one easy fix to solve "too big to fail"--separate commercial and investment banking. If that were the case today, we could just laugh at JPMorgan's bumbling loss, not be scared for the stability of the global economy.
somebody's gotta pay for it,
and somebody's gotta pay for their bonuses also
U.S. investigates whether JPMorgan traders hid losses
and it is fast approaching 6 billion
do I hear 7
ACCOUNTABILITY WE CAN BELIEVE IN
wanted for conspiring to cover up public corruption
reward or prosecution inevitable