Hedge funds investments in the PPIP will be levered, but the equity downside is still 100%. Apparently, though, that's not enough for Rep. Kenny Marchant, who believes the private side doesn't "have enough skin in the game." He wants them taking this shit seriously, and in order to get them to do so, we've got to up the stakes. So, suggestions? Off the top of our heads we're thinking 300% downside for the hedge funds that get involved. You know, a real Dantesque financial plan. We also like the idea of them getting burned but like, REALLY burned, as in third degree burned, via dipping managers in a life-sized deep fryer, with gigantic tongs.
Meredith Whitney Not Worried About Jamie Dimon's Ability To Handle House Financial Services Committee, Unlike Some Chief Executives She Knows
As you may have heard, later today Jamie Dimon will once again testify on Capitol re: a certain whale's multi-billion dollar losses. Unlike last week's hearing, conducted by the relatively reasonable Senate Banking Committee, this time Dimon will face questions and screeching from the relatively bat-shit House Financial Services Committee, a group of people we hope will not hold back. Yet despite the HFSC's history of making witnesses look good, not matter how egregious their offense, by conducting inquiries in a manner that would suggest recreational bath salts abuse by the Congressmen and women, Bloomberg's Tom Keene expressed worry earlier this morning about Dimon's ability to navigate the hearing. Would today be "tougher" for the JPM chief, Keene asked Bloomberg TV Surveillance guest Meredith Whitney? According to the analyst, Dimon be more than fine and while we're on the subject, not that you asked, she can think of another bank CEO who'd crack under Congressional questioning on account of the fact that he doesn't have eyes you could get lost in. So, 1. How dare you, lady? Lloyd's impish smile and comedic timing don't do it for you? And 2. We thought these kind of blows were reserved for Vikram. Banking Industry Must Reinvent Itself, Says Whitney [Bloomberg TV] Related: Meredith Whitney Cannot Stress Enough How Little She Thinks Of Citigroup
The House Financial Services Committee Would Also Like A Word With John Stumpf
Just a friendly li'l chat.