Poor, poor banks

Jamie Dimon, of JP Morgan, really has it rough:

Two years ago, Jamie Dimon, chief executive of JPMorgan Chase, told an audience in Davos that people should stop picking on bankers. Mr. Dimon is still waiting for his wish to come true.


JPMorgan Chase slashed CEO Jamie Dimon’s bonus by 53%, citing the fallout from the bank’s so-called London Whale trading losses.

Ok, not that rough:

Earlier this month, for instance, an international conclave of central bankers and bank supervisors, meeting in Basel, Switzerland, relaxed new rules that were intended to ensure that banks would be able to survive an event like the collapse of Lehman Brothers in 2008.

The rules, which are not binding but serve as a benchmark for national regulators, would require banks to maintain a 30-day supply of cash or liquid assets that are easy to convert into cash. But after the decision in Basel this month banks would have until 2019 to accumulate the additional cash and assets, instead of 2015. The regulators also broadened the kinds of assets that qualify, so that now they can include even some mortgage-backed securities—the same general class of security that was at the heart of the crisis.

and this is despite more criminal activity being found such as:

UBS, based in Zurich, agreed to pay a $1.5 billion fine to the global authorities after admitting this month that it had helped manipulate a key benchmark rate used to set mortgage and other interest rates. Wegelin, a private bank based in St. Gallen, Switzerland, shut down earlier this month after admitting it had helped wealthy Americans evade taxes. The bank, founded in 1741, was the oldest in Switzerland.

Banks, at least in the US, are back making record profits:

JPMorgan has reported record profits for three consecutive years and praised what they called Dimon’s forceful response to the trading problems.

And don’t cry too much for Dimon, his ‘punishment’ means he’ll only make $11.5 million this year. I think  most of us could scrape by on that.

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