"It's proven by the fact that you have millions of people who are in foreclosure who never should have been in foreclosure. This just didn't happen because there were a lot of irresponsible people. Think about it. This is unprecedented, that this many people, all of a sudden, would be in foreclosure. What went wrong?" she asked Mark Haines. "I'll tell you what went wrong. These exotic products that were put on the market tricked people into mortgages they could not afford. They had mortgages that reset that they never anticipated would reset, where the interest rates were double, where their mortgage payments were double. They never anticipated that. They didn't know what they were getting into. This is not just some irresponsible homeowner. This is massive fraud...On a macro level, policy for the whole country, I still don't understand how you get around the moral hazard without just simply saying all of the contracts that are out there are not worth the paper they're printed on."
Jamie Dimon To Be Asked Why He Was Running JPMorgan Like SeaWorld, Hopefully
If we're being totally honest, while it had its moments, last week's Jamie Dimon Congressional hearing to discuss Whale Boy was a bit of a letdown, theatrically-speaking. This was probably due in large part to the fact that it was conducted by the Senate Banking Committee, and the Senate typically comes off intelligent and reasonable compared to the House,* and proceeded accordingly. As we surely don't have to tell you, this is not the kind of hearing we are interested in. We are interested in hearings that involve Congressmen and women screaming "I CAN'T BELIEVE YOU HAVEN'T BEEN PROSECUTED YET!!!" at financial services employees and accusing them of dressing up as Girl Scouts in order to deceive the public. We are interested in hearings that involve the use of the term "smart-alecks." We are interested in hearings that involve subjects being told to be more like Magic Johnson. We are interested in hearings that involve subjects who've never worked for Goldman Sachs being grilled until they break about working at Goldman Sachs. We are interested in hearings that involve bath salts, or the suggestion that the people conducting it have taken a bunch of them and at any moment might leap across the dais to eat the witness's face off. Fortunately, we might get the chance for all that and more tomorrow, when Dimon makes another trip down to D.C. to appear before the House Financial Services Committee to talk whales. In House Testimony, Dimon Sticks To Script [Dealbook] *Make no mistake, most of them fell short of becoming Rhodes Scholar Quarterfinalists, but we're speaking in relative terms here.