And not just because it involves a London Whale. Dimon was solidly in the Obama camp, but now Dimon says he's having second thoughts about the Democrats' war on the rich. I can understand this, and if it's genuine, then I say it's about time someone as smart as Dimon wakes up to statist corruption and how the whole crony system is dangerous to private enterprise, even when it seems to be a friend-- the political realm is killing the economic realm. On the other hand, it all sounds like a manipulation to justify full speed ahead with Dodd-Frank.
Those who accuse libertarians of being naive when we criticize government regulation miss the operative word -- government. Banks have become so big, and risk is so prevalent, that most banks want regulation -- they want effective feed-back regarding their ability to survive stress in the market. Unfortunately, government regulators can't seem to get the job done. Banks would pay private companies to give them a seal of approval, because this seal of approval is valuable to a bank that wants to assure investors they are solid. With a private system there would be enough flexibility to find the best way to make investors and bankers more comfortable. The private system, wanting to expand business, would also find a way to not block out the small players so that competition can flourish and Big Banks that can't cut it can fall by the wayside and allow competitors to take up the slack and improve the overall finance industry.
We are so government-focused that no one can imagine regulation efforts outside government control.