Member access

4-Traders Homepage  >  Shares  >  Nyse  >  JPMorgan Chase & Co.    JPM   US46625H1005

SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

JPMorgan Chase & Co. : White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight

05/14/2012 | 11:46am US/Eastern
Recommend:
0

--White House says losses show need for Wall Street reform

--White House says shareholders, not taxpayers, should suffer from the losses

-White House criticizes those trying to water down regulations

(Updates with comments from the White House press secretary beginning in the 4th paragraph.)

   By Jared A. Favole 
   Of  
 

The White House said Monday the losses at JPMorgan Chase & Co. (JPM) reinforce the need for stricter oversight of Wall Street and criticized people who say rules for banks should be watered down.

"This event only reinforces why it was so important to pass Wall Street reform, and why it is so important to implement Wall Street reform," White House Press Secretary Jay Carney said Monday while en route to New York with President Barack Obama.

The White House's comments won't comfort Wall Street, which feared the $2 billion-plus loss at JPMorgan last week would be used as evidence to hand more power to bank regulators. The chief executive of the bank, Jamie Dimon, said over the weekend the firm's losses come at a "very unfortunate, inopportune time" as regulators are still crafting rules governing banks.

The losses also play into a key theme of the president's re-election bid, as Obama says Wall Street banks need to be reigned in to prevent taxpayers from suffering when bankers make poor decisions. Obama advocated heavily for reforming Wall Street reform in the wake of the financial crisis, and the White House sees the trading loss as proving him right.

"We can't prevent bad decisions from being made on Wall Street," Carney said. He said the Dodd-Frank financial overhaul is important because it helps prevent "the taxpayer from bearing the burden of the mistakes that Wall Street makes."

He said it's important that "those who are suffering losses because of what happened here are shareholders, and the bank itself, and not average Americans, who had nothing to do with these transactions."

Carney said the U.S. needs to "resist the efforts of Republicans and Wall Street lobbyists to undo" Wall Street reform.

"It's amazing given the events that we've seen in the last few days, that there are still those who are out there arguing that we should repeal Wall Street reform, that we should let Wall Street write its own rules again," Carney said.

When asked if he was referring to Dimon, who has pushed back against bank regulations, Carney said he wasn't speaking about anyone specifically.

-By Jared A. Favole, Dow Jones Newswires; 202-862-9256; jared.favole@dowjones.com

Recommend :
0
React to this article
Latest news on JPMORGAN CHASE & CO.
2h ago JPMORGAN CHASE : Fitch Rates J.P. Morgan PUTTERs/DRIVERs, Series 4441Z Trust
2h ago JPMORGAN CHASE : Fitch Affirms Palos Community Hospital's (IL) Revs at 'AA-'; Ou..
3h ago U.S. watchdog warns about big banks' use of government-affiliated loans
1d ago Fairfax-led group to invest in Eurobank in bet on Greek turnaround
1d ago WILBUR ROSS : Fairfax-led group to invest in Eurobank in bet on Greek turnaround
1d ago JPMORGAN CHASE : Declares Preferred Stock Dividend
1d ago EXCLUSIVE : Turmoil at Symantec luring activists, buyers - sources
1d ago BARCLAYS' : boss treads fine line in investment bank review
1d ago JPMORGAN CHASE : Europe reaches end of crisis-driven reform trail to banking uni..
1d ago ANCHOR INVESTORS BID FOR BIG CHUNK O : sources
Advertisement
Chart
Duration : Period :
JPMorgan Chase & Co. Technical Analysis Chart | JPM | US46625H1005 | 4-Traders
Income Statement Evolution
JPMorgan Chase _ Co. : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF