Dimon Says Banks Gave Consumers ‘Weapons of Mass Destruction’

Discussion in 'Wall St. News' started by ASusilovic, Jan 29, 2009.

  1. Banks gave consumers “weapons of mass destruction” by loading them up with debt, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said.

    “We gave them the weapons of mass destruction to borrow too much,” Dimon told a panel at the World Economic Forum in Davos, Switzerland today. “I don’t blame them, I blame the CEOs of their own businesses,” he added.

    Losses and writedowns from the credit crisis that started with the collapse of the subprime mortgage market in the U.S., have surpassed $1 trillion, forcing governments across the world to inject cash into banks and tighten controls on the financial industry.

    “To policy makers, I say where were they? They approved Basel II that didn’t work,” referring to rules governing how much capital banks hold to back their loans. “They approved all these banks. Now they’re beating up on everyone, saying look at all these mistakes, and we’re going to come and fix it.”


    WMD...so true...not in Iraq...at home:D