MUST READ - Bob Diamond and banking's crisis of legitimacy

[malaise]

http://www.guardian.co.uk/business/economics-blog/2012/jul/19/bob-diamond-banks-crisis-of-legitimacy
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Press reports indicate that regulators were willing to give Diamond a free pass – right up to the moment when a serious political backlash took hold. Diamond started to fight back, pointing an accusatory finger at the Bank of England. At that point, he had to go.

Diamond apparently believed his own rhetoric – that he and his bank are critical to economic prosperity in the UK. The regulators called his bluff and forced him to resign. Barclays' stock price rose slightly on the news.

The final lesson is that the big showdowns between democracy and big bankers are still to come – both in the United States and in continental Europe. On the surface the banks remain powerful, yet their legitimacy continues to crumble.

Jamie Dimon, CEO of JP Morgan Chase, presided this year over reckless risk-taking to the tune of nearly $6bn (we might call it a "three Grübel" debacle), yet his job apparently remains secure. Dimon even remains on the board of the Federal Reserve Bank of New York, despite the fact that the New York Fed is deeply involved in the investigation not only of JP Morgan Chase's trading losses, but also of its potential involvement in the broadening Libor scandal.
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Should be fun watching Willard fundraising with these thieves next week.