January 28, 2011

Sarkozy slams JP Morgan chief

Nicolas Sarkozy speaking at the congress of hi...Image via Wikipedia
Way to go Mr. Sarkozy, pitiful though that his rant will fall in oblivion by tomorrow, you are right we are living in a madhouse and moral hazard is the rotten pillar on which corporations are built upon.








Sarkozy talking to Dimon, JP Morgan Chief as reported by Reuters:

“The world has paid with tens of millions of unemployed, who were in no way to blame and who paid for everything. It caused a lot of anger. Too much is too much. The world was stupefied to see one of five biggest U.S. banks collapse like a house of cards. We saw that for the last 10 years, major institutions in which we thought we could trust had done things which had nothing to do with simple common sense. That’s what happened… There is an ocean between flexibility and the scandal we saw. So if people present me as obsessed with regulation, it’s because there is a need for regulation. I don’t contest the principle of securitisation, but when one offshore country guaranteed 700 times its GDP, are we in the market economy or in a madhouse? Bonuses don’t bother me, provided there are also … draw-downs when there are losses. When things don’t work, you can never find anyone responsible. Those who got bumper bonuses for seven years should have made losses in 2008 when things collapsed.“
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