Remember all the dustup over the $2b loss at Chase? The media had a feeding frenzy. Congress investigated with Jaime Dimon genuflecting and making the appropriate mea culpas. Congress called for more legislation and stricter enforcement of Dodd-Frank. Of course, it was much ado about nothing. The loss was in the investment bank and did not imperil the commercial bank. But hey, who cares about the facts? Now Microsoft has announced that it is booking a $6.2 billion charge for losing money on its Bing search engine and a $6.3b loss on its aQuantive acquisition. That's $12.5b or 6 times the loss at Chase. So where is the media frenzy? Where are the calls for Steve Ballmer's head? Where is the congressional call for an investigation? Instead what do we get? Silence.
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com