Scott Brown’s, ahem, concerns:
In that letter, Brown calls for only one thing: a clawback on the compensation of “the responsible parties in your company.” The problem is that Dimon already said that was likely to happen.
How tough and independent — telling a bank to do what it already said it would do!
What’s more, the Dodd-Frank Act makes clawbacks mandatory in some cases. So what does Brown do? He tells Dimon that clawbacks are mandatory in some cases. What a maverick.
Just in case anyone at JPMorgan thought he was in any way serious, Brown made sure further down in the letter that *wink* *wink* *nod* *nod* that he’s still Wall Street’s favorite Senator:
Lest his pointless letter seem too threatening to his scores of friends on Wall Street, Brown slips in some language that they would understand: “While regulations are necessary, it is also very important that when unprecedented mistakes do occur, banks will use the internal policies that they have set up to promote employee accountability.”
Translation: When Wall Street screws up on an unprecedented scale and engages in risky behavior that undermines confidence in the market, they should treat it as an internal matter. No need for the government to get involved — just move along, folks.
This, incidentally, is the same message as the one being spread by extreme conservatives like Senator Lamar Alexander of Tennessee. Of course, it was the lack of government involvement that allowed the financial crisis to happen in the first place.
I’m sure Scott Brown doesn’t want anyone to remember his role in Dodd-Frank was to water down regulations on risky trading which was at the center of the 2008 banking crisis. Taxpayer backed JPMorgan’s now 3 billion dollar loss to some is a test scenario to see if the rule should be strengthened.
Sounds like Scott Brown is singing a different tune, keep the money comin’:
image via Kos
I’ve earned it!