Obama says JPMorgan loss shows need for Wall Street reform

WASHINGTON Mon May 14, 2012 6:49pm EDT

U.S. President Barack Obama holds a news conference in the White House Briefing Room in Washington, March 6, 2012. REUTERS/Larry Downing

U.S. President Barack Obama holds a news conference in the White House Briefing Room in Washington, March 6, 2012.

Credit: Reuters/Larry Downing

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WASHINGTON (Reuters) - President Barack Obama said on Monday the huge trading loss at JPMorgan Chase & Co illustrated the need for Wall Street reform and the same kind of an error at a less stable bank may have required government intervention.

"JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting," Obama said on ABC's "The View," according to a transcript released by the network.

"We don't know all the details. It's going to be investigated, but this is why we passed Wall Street reform," Obama said.

Wall Street reform was one of Obama's signature domestic policy achievements, but he has faced opposition in trying to enforce it.

Obama said in the interview that he was still fighting for tough reform.

"This is the best, or one of the best managed banks. You could have a bank that isn't as strong, isn't as profitable making those same bets and we (the government) might have had to step in," Obama said. "That's exactly why Wall Street reform's so important."

(Reporting by Jeff Mason)

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Comments (3)
Argyle9 wrote:
Mr. President, with your epic-fail track record on being involved in the business world (Solyndra, & other failed companies), we the people kindly ask you to stay out of the way of the free market and let it operate as it was intended: without any government interference. In other words, please stop trying to fix something that isn’t broken; it’s all of those ‘fixes’ from prior Administrations and Congresses which have done so much damage to our economy in the first place.

May 14, 2012 7:41pm EDT  --  Report as abuse
duncan73120 wrote:
Barack Obama should be careful when making statements like this… While JP Morgan loosing this money was careless and irresponsible I would ask the people of this Great Nation the following…

Is the Puppet Master (Barack Obama) really the one to be handing out investment advise. He has lost over 2b in solar panel investments alone. I ask you, where is this Hypocrites self regulation. Barack Obama feels its OK to judge other people on their mistakes, but when he makes them and larger they are swept under the carpet.

The Tragedy here people is at least with JP Morgan their private investors and they know and understand the risks associated with putting their money there. With investing in the Government we don’t have a choice, there is 0 regulation ever, and they truly do spend like drunken sailors.

JP Morgan are accountable to their shareholders, Barack Obama giving financial investment advise would be parallel to a hooker advising how to not contract VD.

May 14, 2012 7:52pm EDT  --  Report as abuse
BakoD wrote:
That is what we need argy – more help for the souless banking industry

May 14, 2012 8:27pm EDT  --  Report as abuse
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