Skip to main content

Jamie Dimon's Rant: Jail The Rumor Mongers!

  • Author:
  • Updated:

What could Jamie Dimon have been thinking? You'd think that with all the financial pain inflicted on Wall Street and investors by mismanagement of our investment banks, the chief of JP Morgan Chase would be cautious of calling for the Securities and Exchange Commission to haul out the handcuffs and fire-up the perp walks.
Instead, Dimon took to the Charlie Rose show last night to call for investigations and jail terms in connection with the collapse of Bear Stearns. He even insisted that those jail terms should not be brief.
Who does he want to jail? Not those responsible for the financial losses that have forced the creation of extraordinary things like emergency rate cuts and special Federal Reserve borrowing windows for brokerages. Instead, he's demanding the jailing of anyone who "knowingly starts a rumor or passes on a rumor."
This all springs from the unsubstantiated claim that certain hedge funds shorted Bear Stearns and then conspired to spread rumors that brought it down. How does Dimon know that this conspiracy occurred? "Where there's smoke, there's fire," Dimon told Rose. So we have a very simple question for Mr. Dimon: should people who spread rumors about alleged short-selling conspiracies also be investigated and jailed?
Or are only the fragile titans of Wall Street entitled to that kind of protection?
SEC should investigate Bear collapse: JP Morgan CEO [Reuters]