JPMorgan’s $3 billion lost bet

Democracy Now!:

As the financial giant JPMorgan Chase continues to suffer major losses on its risky derivatives trades, Nobel Prize-winning economist Paul Krugman says bank chief Jamie Dimon should resign "precisely because he’s been using his supposed wisdom as a way to campaign against reform, and now it’s turned out that he wasn’t that wise after all. In fact, his bank was doing seriously bad stuff." Krugman says, "I think it would be better for everybody if he went." The Justice Department is now probing JPMorgan amid new calls for tougher regulation of Wall Street. "They’re making these bets with your money, because these are banks that are guaranteed. They have guaranteed deposits," Krugman says. "We’re supposed to have a rule going into effect — the Volcker Rule — that says that they can’t do this kind of stuff. But they are continuing to do it. ... We cannot trust the bankers to use this money safely."