Who would have guessed that five years later the great villain of the mortgage crisis would be the guy who not only didn’t create it but helped to end it? Meanwhile, in 2008 Jack Lew helped to oversee a disaster at Citigroup that would require serial taxpayer bailouts from Treasury and the Federal Reserve. Mr. Lew escaped New York for the Obama Administration and five years later he runs the Treasury.
Mr. Dimon’s worst sin in Washington’s eyes may be that J.P. Morgan earned record profits last year despite the Whale losses. Investors continue to express their view that—political assaults aside—the underlying enterprise is healthy. In July Morgan stock hit its highest point in more than a decade. The shares have since declined but still trade above their level prior to the Whale news in 2012.