Is `London Whale' Part of JPMorgan Culture?

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Sept. 17 (Bloomberg) -- Bloomberg View columnist Gary Shilling and Delaware Governor Jack Markell examine JPMorgan agreeing to pay at least $750 million in fines to resolve U.S. and U.K. probes of "London whale" trading losses. They speak on Bloomberg Television's "Bloomberg Surveillance."

$700 million versus $ 35,000 million.

Gary shilling, do you have something?

I think there are two overarching factors that are important to me.

One, simply too big to manage.

Jamie dimon says he knows all the joints and bones of the place, but this london whale thing happens in he first said it was a tempest in a teapot.

He honestly didn't know.

The second thing is culture.

I think every institution has a culture and it starts at the top.

You say, was this this offbeat, these guys went wild or was that -- this is not in a vacuum.

There have been a number of other legal challenges for jpmorgan.

It is starting to add up.

Jimmy dimon has been washington negotiated with different agencies.

He faces inquiries from 7 different u.s. agencies and two european nations.

The amount of money he is paid up so far, 17.2 billion dollars is what jpmorgan is had to pay just to resolve a lot of these penalties and legal overhangs.

It has cost the banks.

I would attest also to attaching main street to wall street.

Governor markell is with us this morning from delaware.

You're known as the tax haven state.

I say that with respect.

Grand banks, 50 used bank vote, surveillance yacht we go out on.

It is called the bell of cincinnati.

It is a joke.

How do we get main street's trust back with wall street question mark for that matter, back with delaware, when we have tax havens and malfeasance by banks?

Let me say, the delaware has no sales tax and our other taxes are very attractive.

It is very different -- and you have every right to do that.

Absolutely we do.

That is why so many people come to shop and work and live in delaware.

As respected jpmorgan chase, certainly wrongdoing ought to be punished, but we have to understand, this is a company with hundreds of thousands of employees.

The overwhelming majority of the people who work at jpmorgan chase, including pretty much all the people who work in our state, or middle-class people.

All they want to do everyday is go to work, do the right thing, go home and raise a family.

Sometimes these companies get tainted with -- painted with a broad brush.

So you support these actions to put 2008 behind us.

I think we have to.

We have to move on.

It is really important financial industry, the financial sector be strong, both in terms of lending as well as employment.

We could go on forever.

We are to talk about delaware in a bit.

The bell of cincinnati.

That is a good game if we had a yacht.

A federal judge, he came up in another case, where he basically did not accept -- was from one of the other banks and did not accept it because he said, if they -- how can you say we don't admit, we don't deny, etc., but you're going to pay half $1 billion fine?

I think there is a change here.

It is a market change.

It is a change and it is a win for mary jo white, the new chairwoman.

This text has been automatically generated. It may not be 100% accurate.


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