Preparing for the next one?

Written by Biloxi

As the Financial Reform bill is waiting for a vote from the Senate and a final vote from Congress before President Obama signed the bill into law, one has to question will there be another financial crisis or better yet, are we prepare for the next one?

Andrew Ross Sorkin, author of the book 'Too Big To Fail', wrote in June in the NY Times Dealbook column that the Dodd-Frank Financial Reform bill is short-term to reform Wall Street that may stop the next financial crisis. Sorkin warns that "financial institutions are already exploring new ways of making money that could be just as risky as investments that caused current crisis." Click here to read more.

And Sorkin has a point. In fact, last month, JP Morgan Chase CEO Jamie Dimon had shuffled roles of executives. Read more. In addition, Dimon has now set his sights of expanding his company overseas.

From NY Times blog:

...Mr. Dimon has made expanding overseas a priority. JPMorgan Chase gets about a quarter of its revenue from international operations and has few retail branches outside the United States. Even its global investment banking and treasury services businesses focus mainly on Western Europe.

Other big banks, like HSBC and Standard Chartered, have much stronger toeholds in emerging markets. Citigroup, where Mr. Dimon and Ms. Miller rose through the ranks together, derives nearly 60 percent of its revenue from overseas and has had retail operations in China and India for decades.

Ms. Miller is Ms. Heidi G. Miller who Dimon named president of the bank’s international operations and chairwoman of a new global advisory committee. Dimon named his closest executives in new roles to start global corporate banking business and seek opportunities in Europe, Latin America and Asia.