One thing that JP Morgan CEO Jamie Dimon said on the conference call where he addressed his bank’s $2 billion trading loss last week was that he knew proponents of regulation would use it as an opportunity to push their agenda.
He was right, obviously. From the White House pool report, here’s the official response to what’s going on a few dozen blocks downtown from where President Obama will be addressing graduates at Barnard College this morning.
“What I can say is this event reinforces why it is so important to pass Wall Street reform. … The president fought very hard against Republicans and Wall Street lobbyists to get Wall Street reform passed and also worked very hard to ensure the protection bureau was part of it and fought hard to make sure the Volcker rule was part of it.”
“Ever since it was passed there have been millions and millions of dollars spent by Wall Street lobbyists trying to water down, delay and render ineffective the rules that have been put into place. The president has fought that. This merely reinforces whey the president was right to take on this fight.”
“We can’t prevent bad decisions from being made on Wall Street. What was so important about rules being put into place through Wall Street reform is that we can prevent the taxpayer from bearing the burden…. What’s important to note here is that those suffering the losses because of what happened here are shareholders and not average Americans who had nothing to do with this. .. The president’s commitment was that we couldn’t have it happen again where the failure of some banks or the reckless behaviour of some individuals on Wall Street could cause the kind of financial crisis we saw in 2008.”
“It is amazing that there are still those who are out there arguing we should repeal Wall Street reform, that we should let Wall Street write their own rules again.”
So there you have it.