3 Scary Things About the Banking Bloodbath

The following video is part of our "Motley Fool Conversations" series, in which financial and economics-sector head Ilan Moscovitz and consumer-goods editor and analyst Austin Smith discuss topics around the investing world.

JPMorgan Chase is a behemoth. Its $2 billion trading loss is only a tiny fraction of the its total capital. So why does it matter so much? For at least three reasons:

  • Investors just realized -- once again -- that no trader, executive, or bank is immortal.

  • JPMorgan's risk control seems to have fallen prey to hubris.

  • It reveals that much tougher rules are going to be necessary to prevent the next financial crisis.

The financial heavies are getting a lot of press these days. And much of it is negative. But there's one small bank that's flying under the radar, and it has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Warren Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. Ilan Moscovitz has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase.Motley Fool newsletter services recommendGoldman Sachs. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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