JPMorgan doesn’t understand how to manage risk.” Ok, but why is that? The answer is not too complicated: for over forty years, all the big Wall Street firms have been publicly owned. As a result, when they make money, the executives get huge bonuses; and when they lose money, the owners (i.e., you, your mutual fund, your pension plan) lose money. Thus the incentive to make big risky bets is irresistible.
What Jamie Dimon didn’t tell you on ‘Meet the Press’ – latimes.com.