May 11, 2012
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
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.