Obama wants tough rules after JPMorgan loss: report

[MindMover]

Source: Reuters

WASHINGTON | Thu May 17, 2012 12:45am EDT
(Reuters) - The White House, following a trading loss of more than $2 billion by JPMorgan, wants to ensure a tough interpretation of a regulation aimed at preventing banks from making bets with their own money, The Wall Street Journal reported on Wednesday.

Citing people familiar with the matter, the report said White House officials have stepped up talks with the Treasury Department in the several days since the staggering loss was disclosed by the bank.

The discussions, according to the report, represent the first tangible political impact from the trading debacle.

Obama said this week the huge loss illustrated the need for Wall Street reform and warned that the same kind of error at a less stable bank may have required government intervention.

The issue was one of Obama's signature domestic policy achievements, but he has faced opposition in trying to implement and enforce it.

Treasury Secretary Timothy Geithner said on Tuesday the rules required by the 2010 Dodd-Frank financial oversight law would strengthen the ability of banks to absorb losses like those disclosed by JPMorgan last week.

Read more: http://www.reuters.com/article/2012/05/17/us-obama-jpmorgan-idUSBRE84G07D20120517

[Prometheus Bound]

1. And J.P.Morgan has been engaged to write the new rules.

Just joking.

I hope.

[MindMover]

2. Unfortunately, the joke is on us....you are correct.....

[elleng]

3. What's called for is a

'tough interpretation of a regulation,' so its up to Treasury now; the reg is already written.

[DallasNE]

4. The "Volker Rule" has not yet been finalized

So it can't be inforced. My guess is that Congress has to signoff on the final language.

[MindMover]

5. Which Congress...?.....sign off.....you are joking.....

[Sherman A1]

6. I would have liked tougher rules before

the JP Morgan loss myself. While I don't necessarily blame the President on this one, it seems that enough time has passed for this issue to have been resolved. I would regulate the banks and Wall Street into the dirt myself, with violators enjoying the fun and sun of a wonderful Federal facility on an island off of Florida, but that's just my opinion.

[Marcia Brady]

7. Something about this that I don't understand

If it's their own money (as stated in the excerpt of the article quoted in the OP,) why should we care? If they want to destroy themselves through their own stupid actions, why not let them?

[Prometheus Bound]

9. They were betting with deposits that are indirectly insured by US taxpayers.

[phantom power]

8. Until the banksters stop getting free money and start going to fucking jail, nothing will change.

It's really that simple.