Echoes Of Subprime

"By mid-2003, as the drumbeat of criticism--and a string of investigations--intensified, there were some hints of remorse. At its annual meeting in May, J.P. Morgan Chase issued a statement saying, "We have seen far more than the usual number of serious accidents at the intersection of Wall Street and Main. And our financial institutions, including J.P. Morgan Chase, must take their share of responsibility for that." Two months later, J.P. Morgan Chase and Citigroup agreed to pay a combined $286 million for "helping to commit a fraud" on Enron's shareholders as SEC enforcement chief Stephen Cutler told reporters. The two banks also agreed to ensure that their clients who used complex financial structures account for them in ways that investors could readily understand. Investors will have to wait until the next bull market to gauge whether anything has really changed."

(The emphasis is mine.)

Reading "The Smartest Guys In The Room" this weekend was amazing. To imagine that such a business existing boggles the mind, and seems like a better warning of the current financial difficulties than the LTCM crisis was previously.