Tags: JPMorgan | Dodd | Frank | loss

JPMorgan Loss Likely to Damage Obama

Monday, 14 May 2012 10:23 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
JPMorgan Chase’s $2 billion trading loss could be even more damaging for President Barack Obama than it was for the bank because it indicates the financial crisis of 2008-09 failed to alter Wall Street’s behavior significantly.

Indeed, not much has changed in the financial community, Politico reports. No major bankers have been sent to prison. And commissions set up to investigate abuses haven’t accomplished much.

The president was able to push the Dodd-Frank financial reform bill through Congress, but it obviously wasn’t enough to prevent JPMorgan’s reckless bet, Politico points out. And the bank itself is led by a Democrat — CEO Jamie Dimon.

White House officials say they achieved the strongest law they could get through Congress. And the JPMorgan trades might never have occurred if banks weren’t able through their lobbying to water down the regulations coming from Dodd-Frank. Moreover, the higher capital requirements imposed on banks allow institutions like JPMorgan to deal with such losses more easily, administration officials say.

The Obama campaign will attempt to tar likely Republican presidential nominee Mitt Romney with his support for repealing Dodd-Frank entirely, Politico suggests.

But that approach may not work with voters. “The guy in the street in 2008 and 2009 was worried about his or her deposits, and now it’s clear they should still be worried,” Charles Geisst, a Wall Street historian and professor at Manhattan College, told the website.

“An average person looks at this and thinks, ‘What exactly happened here? How could this happen again?’ And they don’t want excuses as to why it happened. They just want it to go away. But it’s not going away.”

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ben Carson's 2016 Plans Worry Moderates in GOP

Monday, 22 Dec 2014 06:36 AM

The Republican establishment is worried that, should Ben Carson decide to run for president in 2016, the retired neurosu . . .

China Condemns 'Cyber Terrorism' in Wake of Sony Attack

Monday, 22 Dec 2014 06:22 AM

China's foreign minister condemned all forms of cyber terrorism in talks with his American counterpart, a statement sa . . .

State Dept.'s Nuland to Newsmax: Sanctions Reined Putin In

Sunday, 21 Dec 2014 22:10 PM

Without the tough sanctions the U.S. and its allies placed on Russia last year and the faltering Russian economy, Vladim . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved