Dimon Gets It Right

Jamie Dimon of JP Morgan knows what is going on. We have known this since JP Morgan said they would not pay more than $2 for Bear Sterns. So what does he understand now that no one else seems to? Simple answer: the too big to fail concept.

In an editorial in the Washington Post, Dimon seems to understand exactly what the government needs to be doing. He says there is no such thing as too big to fail. We need only to save banks that perform, not just banks that are bigger than others. The government should be focused on banks that are not managing risk well, not the ones who are doing good business.

I agree 100% with Jamie. The government is too focused on trying to regulate the biggest banks that they are overlooking the ones with the problems. Just because a bank is big does not mean that it should not fail. They should be allowed to fail in a more regulated way that does not put the economy at risk. This is supposed to be a capitalist market. Almost everybody has paid back the TARP money. They do not owe the government anything anymore. Why is the government still trying to get a voice in on how these banks compensate their employees. If the government focused more on troubled banks, the smaller community banks would not still be failing everyday. The government needs to get their priorities straight. Cash money is made away from the government. They do not understand the innermost of these institutions. The harder they try, the worse it is going to get.