And the public relations fallout of any regulatory penalty can be significant for companies like Google, which is extremely sensitive about its reputation in the eyes of consumers, said Chris Hoofnagle, a lecturer on privacy law at the University of California, Berkeley, School of Law.
The brewing regulatory problems and the ensuing fallout were on display on Monday when JPMorgan agreed to settle investigations from government agencies in Washington and London into the bank's $6 billion blunder by traders in London, according to people briefed on the matter.
Other banks are bracing for the potential fallout, including major fines and regulatory sanctions.
Goldman Sachs has $700 million in exposure to Italy, according to a regulatory filing released this week, and could feel the fallout if the bonds were marked down.
Policymakers are cognizant of possible risks to financial stability, he said, while indicating a preference for employing regulatory and supervisory tools to mitigate any possible fallout from the Fed's low-rate policy.
Still there is some concern that investors are unhappy with the fallout from the trading losses and persistent regulatory issues, wondering whether a board shake-up is needed to rein in Mr. Dimon.
If something isn't done quickly, millions of people will be thrown out of work because small businesses caught in the fallout of mismanagement on Wall Street and regulatory failure will close their doors.
"The securities industry, which is a critical component of the economies of New York City and New York State, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms," Mr. DiNapoli said in a statement.
Several others have handed over reponsibility for setting tariffs to a regulatory commission, but most chief ministers are worried about the political fallout of charging realistic prices for power.Electricity reform was a centrepiece of the 2001 budget, presented in February.
