Best of the Week
Most Popular
1.North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - Nadeem_Walayat
2.Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - OilPrice_Com
3.Gold and Silver : The Battle for Control - Rambus_Chartology
4.Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - Nadeem_Walayat
5.Deep State Conspiracy or Chaos - James_Quinn
6.The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - Plunger
7.Gold Stocks Coiled Spring - Zeal_LLC
8.Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - John_Mauldin
9.Crude Oil Price Precious Metals Link in August - Nadia_Simmons
10.Gold and Silver Precious Metals Nearing Breakout - Jordan_Roy_Byrne
Last 7 days
These Two Articles Debunk The Biggest Financial Nonsense I See In The Media - 18th Sep 17
Bitcoin Price Crash 40% In 3 Days Underlining Gold’s Safe Haven Credentials - 18th Sep 17
The Sum of Risks – Global, Strategic, Political, and Financial - 18th Sep 17
The Netflix Of Canada’s Cannabis Boom - 18th Sep 17
Stock Market Sentiment Speaks: Either You Learn From The Events Of The Past Week, Or You Are Hopeless - 18th Sep 17
SPX 2500 … At Last! - 18th Sep 17
Inflation Lies, Lies and OMG More Lies - 18th Sep 17
How to Choose right Forex Trader? - 18th Sep 17
Who Has Shaped the World the Most? The Dozen Greatest Achievers - 17th Sep 17
Riding the ‘Slide’: Is This What the Next Stocks Bear Market Looks Like? - 17th Sep 17
Gold Up, Markets Fatigued As War Talk Boils Over - 17th Sep 17
Predicting the Future of the U.S. and the World - 16th Sep 17
Deceit in the Financial Food Chain - 16th Sep 17
Gold GLD ETF Investment Resuming - 16th Sep 17
Extreme Weather & Energy Markets: What's Next? - Video - 15th Sep 17
Trump’s Path to IP Wars - 15th Sep 17
GBP USD Approaches Fibonacci Target - 15th Sep 17
Higher US Interest Rates May Force Higher Inflation Rates - 15th Sep 17
Stock Market Investors: Taking the Road "Less Traveled" Has Its Perks - 15th Sep 17
The 3 Best P2P Lending Platforms For Investors In 2017—Detailed Analysis - 15th Sep 17
The US Debt Bubble Will Soon Warrant Serious Measures - 15th Sep 17
Why it is Often Difficult to Sell a House Fast - 15th Sep 17
S&P 500 At New Record High, Will It Break Above 2,500? - 14th Sep 17
Capital Market Trends - 14th Sep 17
Mike Maloney: The Top 10 Reasons I Own Gold and Silver - 14th Sep 17
The Only Real Europe is Greece - 14th Sep 17
7 Security Tips for Online Traders - 14th Sep 17
5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities - 13th Sep 17
Massive Equifax Hack Shows Cyber Risk to Deposits and Investments Today - 13th Sep 17
Investment Advice for My Children & Grandchildren - 13th Sep 17
TRADE FOR A CHANGE - 13th Sep 17
The Stock Performance of Public Casino Companies in 2017 - 13th Sep 17
Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - 13th Sep 17
Precious Metals Bull Analogs Update - 13th Sep 17
Tip: When “This” Happens, A Stock Price Goes Up… - 13th Sep 17
Crude Oil Price Invalidated Breakout – What’s next? - 12th Sep 17
Red China is a Creation of Globalists - 12th Sep 17
Is Gold in a Real Bull Market? This Chart will Show You - 12th Sep 17
Let's Get Practical: Is the S&P 500 Over or Under Valued? - 12th Sep 17
David Smith: Precious Metals Supply Pipeline “Getting Harder and Harder to Fill” - 12th Sep 17

Market Oracle FREE Newsletter

5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities

Jamie Dimon, Mr. JP Morgan as Treasury Secretary?

Politics / US Politics Jul 06, 2011 - 04:40 PM GMT

By: Dr_Jeff_Lewis

Politics

While news of Timothy Geithner’s exit from the Administration as Treasury Secretary reverberates throughout the political spectrum, Jamie Dimon, CEO of investment bank JP Morgan, is quickly becoming the new leader in the race for this unelected position.


There is very serious concern surrounding Jamie Dimon’s appointment as Treasury Secretary.  Should he be the next in line for the very powerful position, it would confirm once more that it is Goldman Sachs and JP Morgan that call the shots in the White House.  Hank Paulson was a Sachs alumni, and Geithner worked with both Rubin and Paulson, both Goldman alumnus.  Geithner’s toughest decision might have been allowing the failure of Bear, AIG, and Lehman Brothers—all of which could be described as investment banking operations—while allowing JP Morgan and Goldman Sachs to avoid failure on the public’s dime.

Tangling Business and Government

Jamie Dimon is an interesting example of a future Treasury Secretary.  He served as CEO at Bank One—a subprime lender all its own—before going to JP Morgan and buying out his previous employer.  During this time, he also spent time at the Federal Reserve, which would surely enable him to see how the US Treasury, already working in tandem with the private bank, could better funnel cash from Main Street to Wall Street.

Dimon is well adjusted to a position in government.  A Democrat and well-known in Chicago’s political circles, he’s also very close to Geithner.  Dimon was among three banking CEOs who have been given near absolute access to Geithner during the events of the financial crisis.

Not Much a Stickler

Politically, Dimon has nothing going for him that Main Street might find alluring, which does help him in his possible role as US Treasury Secretary.  He recently gained fame in standing up to Bernanke, charging the Fed and government both with creating too much regulation that, in his view, would restrict the banks from financing a future American recovery.

Interestingly, that view disagrees with his position just weeks after receiving a Federal bailout.  After receiving $25 billion, JP Morgan Chase announced its interest in a new policy of acquisitions, hoping to suck up smaller, less politically connected banks, just as the firm had done a century earlier.  Lest we forget that it was the original JP Morgan, the man and banker himself, who received millions from the US government to “solve” the panic of 1907.  The banker’s solution, of course, was to buy up every bank that he would let fail.

It’s hard to see why Jamie Dimon won’t become the next Treasury Secretary.  Few people know who he is, only the bank that he runs.  No one will get to vote on the matter, as it is a position for nomination, not election.  And if Timothy Geithner can earn a position in government—in the Treasury, no less—after failing to pay his taxes in full, Dimon’s entrance into the position should be nothing more than a cakewalk.

Whether Dimon will create any lasting change, or have any real influence, remains to be seen.  However, any way you slice the next nomination, you can be sure that the old policies of the Secretaries past will not be going anywhere any time soon.

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

    Copyright © 2011 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Paul
07 Jul 11, 16:54
one thing

Dimon has one thing going for him that trumps any consideration of competence or even honesty. Its that thing that ensures one particular loyalty keeps control of the planetary purse strings whether it be private banks, the US Treasury or the IMF and World Bank. Everyone knows it, even if they won't say it.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife