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Jamie Dimon Welcomes You to the Next Financial Crisis |

While lawmakers were ostensibly asking Dimon how to prevent the next, distant financial crisis, he was openly telling them that JP Morgan had predicted, to the tune of $100 billion, that we’re hurtling towards one this year.

In his least-challenged, least-questioned statement, Dimon explained the intent and strategy of JP Morgan’s “London Whale” trade – a complicated $100 billion bet that, so far, may have led to a $2 billion loss and $39 billion in lost market value for the bank. The enormous bet, Dimon explained, was designed “to make money for JP Morgan in a global credit crisis.”

Let’s stop and think about that: JP Morgan started the London Whale trade in late 2011 or early 2012. That’s when the bank must have seen a global credit crisis coming. Dimon said in his testimony this week that JP Morgan, with $700 billion in loans, needed to “protect itself” against “a systemic event.” The bank was so positive that this systemic event would occur that it was planning to make money on it.

via Jamie Dimon Welcomes You to the Next Financial Crisis |

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