Fresh off the Friday news dump that its profits stalled in the last quarter (after it had to stop laundering money for Iran and inheriting the lost money of MF Global customers), fresh off the news that JPMorgan Chase might lose $5 billion in the Europe crisis, and, it should be said, fresh off the departure of a JPMC Exec from the White House Chief of Staff position, Jamie Dimon is calling for a real solution to the housing market.
“I would convene all the people involved in the business, I would close the door, I’d stay there until we resolved a bunch of these issues so we could have a more healthy mortgage market,” the 55-year-old chief executive officer of JPMorgan Chase & Co. said today.
The patchwork of U.S. and international regulatory policies governing the housing and mortgage markets are hampering recovery here and abroad, Dimon said on a conference call with analysts after the New York-based bank released fourth-quarter earnings. In the U.S., state foreclosure laws conflict with a variety of federal policies on refinancing or modifying loans to troubled borrowers, Dimon said.
Leadership is needed to overhaul the industry, including reviving the market for private-label residential mortgage bonds and reforming regulations governing mortgage repurchases and foreclosures, he said.
“You could fix all this if someone was in charge,” Dimon said, tapping on the table for emphasis. “No one is in charge.”
Which is pretty funny, since a bunch of Attorneys General just did show some leadership.
Attorneys general or representatives from nearly 15 states met in Washington, D.C., on Tuesday to discuss and share different enforcement options and strategies around various mortgage-related issues, according to sources familiar with the conversation.
The meeting was prompted by the slow pace at which a national foreclosure settlement led by the Obama administration is progressing, and is likely to be the first in a series, said these sources.
“This past Tuesday, a group of like-minded Attorneys General met in D.C. to discuss ongoing and future investigations into the mortgage finance and foreclosure industries,” said Delaware Deputy Attorney General Ian McConnel.
“The talks weren’t just about investigations,” said a source with knowledge of the discussions. “They were also about the attorneys general offices feeling uninvolved in a process by which their federal colleagues have been negotiating on their behalf.” [my emphasis]
Or maybe it’s this show of leadership that’s got Dimon whining?
But what I find most amusing about this ubercapitalist begging for government intervention is this: Dimon says he’s gonna lock “all the people involved in the business” in a room until they come up with a solution. But note who he’s going to invite?
Jamie Dimon has a plan to fix the U.S. housing market: lock mortgage lenders and regulators behind closed doors until they figure it out. [my emphasis]
Because if you realized that homeowners, too, were a fundamental part of the housing business, you might lose your cred as a psychopath.