Best of the Week
Most Popular
1.Gold Price Trend Forecast, Where are the Gold Traders? - Bob_Loukas
2.Stocks Bear Market of 2017 Begins? Shorting the Dow At its Peak! - Nadeem_Walayat
3.Betting on President Trump Leaving Office Early, Presidency End Date - Betfair Market - Nadeem_Walayat
4.Why Stock Market Analysts Will be Wrong About 2017 - Clif_Droke
5.Is This The Best Way For Investors To Play The Electric Car Boom - OilPrice_Com
6.Silver Price 2017 Trend Forecast Update - Video - Nadeem_Walayat
7.Gold Price Set For Very Bullish 2017, Trend Forecast - Austin_Galt
8.10 Things I learned From Meetings With Trump’s Transition Team - - John_Mauldin
9.How Investors Can Profit From Trumps Military Ambitions - OilPrice_Com
10.Channel 4 War on 'Fake News', Forgets Own Alt Reality Propaganda Broadcasting - Nadeem_Walayat
Last 7 days
The Best Reasons to Buy Gold in the Age of Trump - 22nd Feb 17
Silver, The Return of Stagflation - 22nd Feb 17
Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - 22nd Feb 17
Gold: Short End US Rates Matter More Than Long End Real Yields - 22nd Feb 17
CONTINENTAL RESOURCES: Example Of What Is Horribly Wrong With The U.S. Shale Oil Industry - 22nd Feb 17
Here’s Proof Rising Rates Are Good for Gold - 21st Feb 17
Gold and Silver Weekly Update - 21st Feb 17
US Dollar and Gold Battle of the Cycles - 21st Feb 17
NSA and CIA is the Enemy of the People - 21st Feb 17
Big Moves in the World Stock Markets - Big Bases - 21st Feb 17
Stock Market Uptrend Continues - 21st Feb 17
Brent Crude Oil Price Technical Update: Low Volatility Leads to High Volatility - 20th Feb 17
Trump’s Tax System Could Spark The Wave Of Self-Employment - 20th Feb 17
Here’s How to Stay Ahead of Machines and AI - 20th Feb 17
Warning Signs Of Instability In Russia - 20th Feb 17
Warning: This Energy Investment Could Wreak Havoc On Your Portfolio - 20th Feb 17
The Mother of All Financial Bubbles will be Unimaginably Destructive when it Bursts - 19th Feb 17
Gold’s Fundamentals Strengthen - 18th Feb 17
The Flynn Fiascom, the Trump Revolution Ends in a Whimper - 18th Feb 17
Not Nearly Enough Economic Growth To Keep Growing - 18th Feb 17
SPX Stocks Bull Market Continues to make New Highs - 18th Feb 17
China Disaster to Trigger Gold Run, Trump to Appoint 5 of 7 Fed Governors - 18th Feb 17
Gold Stock Volume Divergence - 17th Feb 17
Gold, Silver, US Dollar Cycles - 17th Feb 17
Inflation Spikes in 2017, Supporting Gold Prices Despite Increased Odds of March Rate Hike - 17th Feb 17
Roses Are Red... and So's Been EURUSD's Trend - 17th Feb 17
Gold Trade Note Sighted - 17th Feb 17
Gold Is Undervalued Say Leading Fund Managers - 17th Feb 17
NSA, CIA, FBI, Media Establishment 'Deep State' War Against Emerging 'Trump State' - 16th Feb 17
Silver, Gold Stocks and Remembering the Genius of Hunter S. Thompson - 16th Feb 17
Maps That Show The US’ Strategy In Asia-Pacific - 15th Feb 17
The Trump Stock Market Rally Is Just Getting Started! - 15th Feb 17
Tesco Crisis - Fake Prices, Brexit Inflation Tsunami to Send Food Prices Soaring 10% 2017 - 15th Feb 17
Stock Market Indexes Appear Ready to Roll Over - 15th Feb 17
Gold Bull Market? Or was 2016 Just a Gold Bug Mirage? - 15th Feb 17
Here’s How Germany Buys Time From China - 15th Feb 17
The Stock Trader’s Actionable Guide to Trump - 15th Feb 17
Trump A New Jacksonian Era? The Fourth Turning (2) - 14th Feb 17
Stock Market Yet Another Wall Street 'Witch's Brew' - 14th Feb 17
This Is Why You Don’t Own A Lot Of Stocks - 14th Feb 17
Proposed Tax Reforms Face Enormous Headwinds - 14th Feb 17

Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

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.


© 2005-2016 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