More Calls For Tougher Bank Regulation After JPMorgan Chase Loss [VIDEO]
The trading loss of $2 billion by a division of JPMorgan Chase is triggering calls for tougher regulation of banks.
The loss comes three years after the near-death experience that a number of banks suffered in the financial crisis.
JPMorgan Chase, the nation’s biggest bank, says it lost the money in a trading group that was designed to manage the risks that it takes with its own money. The bank’s CEO says the strategy was poorly monitored.
Democratic Congressman Barney Frank says it’s now harder to argue that financial institutions don’t need new rules to help them avoid what he calls the “irresponsible actions that led to the crisis of 2008.” He says the disclosure from JPMorgan Chase runs counter to the bank’s claim that too much regulation is responsible for the troubles of financial institutions.
JPMorgan Chase CEO Jamie Dimon has been among Wall Street’s most outspoken critics of efforts to more heavily regulate the financial industry.
The head of the Securities and Exchange Commission says the agency is focused on the JPMorgan loss.
(Copyright 2012 by The Associated Press. All Rights Reserved.)