Capital Account – William Black on JP Morgan and the Failure to Regulate Wall Street Fraud

Our favorite ex-bank regulator William Black talks to the lovely Lauren Lyster tonight about JPM’s CIO losses, and how the Fed and the OCC failed to regulate JPM’s risky trading.

Regulators from the CFTC and the SEC (Gary Gensler and Mary Schapiro) were on Capitol Hill today to talk about how the overhaul of that multi-trillion dollar, opaque, unregulated over the counter derivatives market is going. As you know, derivatives were at the center of the JP Morgan trading blow-up, so the loss has seemingly reignited scrutiny from Washington. But here’s a caveat before you get too hopeful: guess who has reportedly been the single biggest donor to the chair of this senate committee? Ding. Ding. It’s JP Morgan.