In most business, when a company loses $2 Billion as part of its core business model, we usually let the market take care of things. Maybe have regulators look into it if the loss was caused by deceptive practices. But generally speaking, the market effects of their decision are a good enough punishment for whatever business. If a company loses $2 Billion and has to go in front of Congress or regulators, the worst part is generally the loss of money.
But banks are different for a few reasons. First, their role in the economy is different than other companies. The financing they provide is not the same as what most companies do. So they should be treated differently.
But even if you don’t buy that, surely, given that they are covered by the FDIC and have been given a fuckton of free money as an industry means that the banks have a different responsibilities to the general good than a manufacturing firm or a tech startup (that I think also have some responsibility, but not as much). As long as banks have the taxpayers funneling money to them, and acting as a backstop, they should act as models of responsibility.
But they haven’t been responsible. JPMorgan Chase isn’t even bothering to make original fuckups.
So, a few heads should roll. I still don’t understand why no CEO’s lost their jobs. We should also make sure the regulations are as tight as possible. Or at the very least, we could stop giving free money to the people who will just gamble it away.