Shortly after I got a halfway clear picture of credit default swaps and other miracles of financial engineering, I began to wonder if the bankster CEOs had the competence to manage their own firms. This isn't a knock on their intelligence but an acknowledgment of personal limits. I recall meeting a guy in the early 80s who had gotten a Ph.D. in mathematics from Oxford and I was puzzled about why he would go to work for a Wall Street firm. Now I know he was part of the
financial engineering movement that was taking over the major firms.
Jaime Dimon seems like a pretty bright guy but he doesn't have the background to evaluate fancy math calculations and it doesn't seem that
Ina Drew did either.
I guess Sheila Bair is thinking along similar lines:
Sheila Bair: JPMorgan Debacle Signals That Big Banks 'Too Big To Manage'
The Huffington Post | By Bonnie Kavoussi
Posted: 05/14/2012 5:21 pm Updated: 05/14/2012 5:21 pm
"I think it does underscore that even with very good management these institutions are just too big to manage," Bair told CNN.
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TALLAHASSEE — A new poll conducted by Public Policy Polling on behalf of Campaign for Fair Settlement, a coalition of grassroots groups, found that 49 percent of independent likely voters in Florida disapprove of the way President Obama has handled the housing crisis.
“The president should heed the message independent voters are sending and show stronger leadership on housing,” said Nish Suvarnakar, the group’s campaign manager. “Obama can help homeowners, his campaign and the overall economy by more aggressively pursuing the banks’ criminal acts and supporting meaningful solutions for underwater homeowners.”
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