Why JPMorgan Is JPMorgan
James Kwak wrote this very insightful piece analyzing the management problems and inherent market competition conflict of interests of JPMorgan and TBTF banks. Reblogging. Let me know what you think.
Originally posted on The Baseline Scenario:
By James Kwak
Which is to say, a basket case. Along with Citigroup, and Bank of America.
We all know that JPMorgan Chase is too big to fail. We all know that this means that it enjoys the benefit of a likely bailout from the federal government and the Federal Reserve should it ever collapse in a financial crisis. So why does that make it a poorly run company? It’s possible for a behemoth to be well run; think of Intel in the 1990s, for example.