Banks’ greed won’t abate without ‘help’

Banks claim they must have immense size in order to meet the liquidity needs of their largest customers. However, risking financial collapse is the price the country is paying for banks to retain their position as leaders in international banking.

A JP Morgan Chase trader in London lost $2 billion-plus on a complicated commodity deal that went south, shaking markets here and abroad. Making big bets always carries big risks. But today, big banks appear not to be chastened when their actions cause systemwide calamity; they appear to be waiting for the dust to settle to push again for regulatory lenience under the Dodd-Frank Act.

Human greed can design endless ways to avoid regulatory control, confirming that orderly markets will not occur until a grim federal presence requires it.

Don Sutherland

Glen Ellyn