JP Morgan is the very definition of 'too big to fail'. Any actions against them to that degree would be self-sabotaging by any country. I'm not saying it's a good thing, but that's the reality right now.
Individuals and companies won't stop having accounts or buying home or investmenting in equipment because 1 bank 'gracefully' shuts down. Another one will take on.
But risking a crash like Lehman Brothers, Wirecard (a journalist nearly got charged with market manipulation in Germany for covering what really happened in this firm), FTX,... is the real self sabotaging for a country.
"Too big to jail" is not a service for the common good. It's just protecting friends.
We need real investigations into how this bank is run, and how others are run as well.
If this was genuinely just an IT incident, that's fine. But it raises questions obviously.
The global economy is built on confidence which is derived from trust in financial institutions and whether governments act economically reasonably.
It's not a matter of whether there's other banks that can take on the business. It's a matter of government intervention to that degree would rock confidence and cause a negative shockwave through the markets, which would most definitely affect you no matter how much or how little you have invested in the bank in question. New backers for loans made to the largest corporations and countries on earth, easily reaching billions if not trillions of dollars would need to be accounted for and reorganized. A primary source of funding for housing, infrastructure projects, etc. would be eliminated.
I think you fail to see how deeply entrenched the largest financial institutions in the world are with modern society. Our governments literally depend on them to function because of the complexities of globalization.
> JP Morgan is the very definition of 'too big to fail'
If the government revoked the license for a local lawn care company on the basis of a records retention mistake, I’m fairly sure they’d have a case for reversal in the courts. I get we’re technically minded, and so technical mistakes rank up with mortal sins, but let’s keep a sense of perspective.
JP Morgan is not a local lawn care service, they have the funds to not make mistakes like this. Larger companies should be held to a higher standard because their actions have a wider impact.
> Larger companies should be held to a higher standard because their actions have a wider impact
Sure. My point is this has nothing to do with too big to fail.
Also, what is the impact of these records being deleted? If you have a claim that reasonably involves them, it is basically cashable due to the error. If nobody can show damages, it’s hard to argue this mistake had a wide impact.
