The MBA management: life can be unfair,
even when not unfair also often let a person feel unfair. JPMorgan Chase
(JPMorgan Chase) and the UK
As people increasingly, governments are
tightening against the government's regulatory support industry. Comfortable
environment change results cannot be predicted, but is likely to bring the pain
in the future. Enterprise
As usual, investor Warren Buffett (Warren
Buffett) told Bloomberg Television (Bloomberg Television) brilliantly expressed
during an interview with this: "you have to like a Wolf exposed the throat
to throw in the towel... you can't win." He was referring to the jpmorgan
chase is likely to be $13 billion with the federal and state regulators to
settle, but this also applies to British energy company.
If there is one thing worth mentioning,
that is, j.p. Morgan is relatively light punishment. The bank has set aside $23
billion to pay legal and regulatory costs?? These money is enough to make the
company reach the agreement, can also make it separately with BlackRock
(BlackRock) and Goldman Sachs Asset Management (Goldman Sachs Asset Management)
investors such as settlement. On Wall Street about Jamie Dimon (Jamie Dimon)
Banks punished show anger, does not extend to his claim.
At the same time, the six major energy
suppliers are wrestling with politicians, which is forcing them to pay a
costly, continuous efforts for many years, so that the use of nuclear energy
and renewable energy instead of coal-fired power generation, and efficient.
Politicians also threatened, if energy suppliers will these costs and other
costs on to consumers, will be forced to freeze prices and to impose new taxes.
Banks and utilities to protest his won't
have what results being unfairly treated. Since the 2008 financial crisis
afflicted people don't have the time to listen to business complaints; They simply
don't trust these enterprises. Even Mr Dimon?? In his bank may suffer under the
condition of criminal charges?? Forfeit also said yielding.
Companies considered to be "fair"
is often different from the understanding of the consumers, especially when
involving the price. Nobel laureate Daniel Kahneman (Daniel Kahneman) and two
scholars studied for the first time in nearly 30 years ago this understanding
differences.
They set up an experiment, asked a group of
subjects: when the defects in the products a company should do? Options include
to the highest price auction, draw or for consumers to wait in line. Results
most people choose the last one. Only 4% of people think that the auction
(classical economics thinks the most efficient method) is the most fair.
Has been angry consumers for basic goods
and services prices held protests and even riots, even if only in passing on
the wholesale cost. These include the mid - 1860 the riots broke out in the
southern United States for bread prices, and, more recently, Sudan's unrest
because of rising fuel prices.
Don't even sell staple of Starbucks coffee
in China (Starbucks) but also because of its price is higher than the United
States, and higher operating margins by media criticism in Asia. The title of
the China Daily (China Daily) said: "starbucks can't make a reasonable
explanation to the high price in China".
In real terms, British gas and electricity
prices rose by 41% and 20% respectively since 2007, and climate change policies
(including a carbon tax on coal and gas power generation) will increase the
cost of supplier. Electricite DE France (EDF) has guaranteed, its new nuclear
plants in Britain twice would is the wholesale price of electricity.
British prime minister David Cameron, David
Cameron has promised "reverse energy bills rise", the Labour leader
Ed Miliband (Ed Miliband) commitment will be forced to freeze energy prices for
two years, at the same time, a former conservative prime minister John Major,
(John Major) called for impose a windfall tax. When Centrica subsidiary of
British Gas, British Gas) in an attempt to defend the planned price increases
on Twitter, attracted a large number of angry posts.
The legitimacy of the bank problem has
nothing to do with the price, but they get the taxpayer support in the 2008
crisis, including institutions such as jpmorgan chase, don't need a bail-out.
This includes the $30 billion the federal reserve (Fed) support the worst
assets, to encourage Mr Dimon buy Bear sterns (Bear Stearns).
Most people believe that through a bail-out
for bankers stupidity pay is not fair, that's right. Relative to this big
background, j.p. Morgan because of bear stearns and Washington Mutual
(Washington Mutual) was punished for misconduct unfair, is a kind of balance.
Washington mutual bank is jp Morgan chase during the financial crisis to buy
another bank.
So the enterprises should do? They can not
get the trust of the consumers, but also be regarded as soft targets by
politicians, easily affected by mutations in regulatory tightening and
regulations.
First, they should continue to defend
himself. This is not easy, because no one wants to listen to, and many people
feel angry, but they need to persevere. Analysts at Liberum Capital Peter
Atherton (Peter Atherton) said: "we know why energy prices rising. It is
not cannot explain, reason is that the cost is rising." In the end, these
words are bound to impress.
Second, they should be more transparent.
Banks and public utilities companies tend to benefit from trade and product
pricing is not transparent. Banks prefer otc derivatives to exchange-traded
contracts. Energy companies to design complex energy price list, so that the
customer is very difficult to make a comparison.
They play this trick is lose the trust of
the consumers and regulators. Reform of Britain's Labour party put forward the
best idea is that the wholesale energy into exchange traded, instead of using a
bilateral contract in favour of vertical integration of large companies.
Nothing can hide if energy company, then they should not resist such reform.
Finally, they must be patient. When
jpmorgan chase after this, perhaps the worst situation has in the past (in
addition to the criminal charges). Energy companies will engulf a period of
time, but no politicians don't want to let them run. After all, utilities or
useful.
