U.S. Underlines the Need to Reform Wall Street After Losses of JPMorgan
The White House said today that recent multibillion-dollar losses at JPMorgan Chase in high-risk investments demonstrate the need for further reforms of the U.S. financial sector.
The spokesman for the U.S. presidential residential, Jay Carney, said the loss of at least 2,000 million dollars from a unit of JPMorgan Chase in charge of derivatives underlines the need to change the mode of action of major financial institutions.
JPMorgan today confirmed the departure of its chief investment officer Ina Drew, after the division she oversaw carry out some operations that caused serious losses to the largest and most profitable U.S. financial institution.
“This incident reinforces the importance of adopting the reforms that the president has fought hard against Republicans and lobbyists for Wall Street,” Carney said aboard Air Force One when the President Barack Obama moved to New York several campaign events.
Carney stated that it is understandable that some people still oppose Wall Street to more stringent regulations in the stock market to avoid risks that affect the entire system.
“We can not prevent bad decisions on Wall Street, which is important to achieve the standards of Wall Street reform is to prevent taxpayers bear the consequences,” said Carney.
The spokesman said that you can not repeat the same irresponsible behavior that led to the 2008 financial crisis, sparked by the collapse of Lehman Brothers, and that caused failures in the system.
The U.S. government has since enhanced supervision of financial institutions and capital requirements to not be necessary to grant vast new public funds to avoid a crash.
It also seeks to impose limits on certain high-risk speculative investments with the so-called “Volcker rule.”
Category: Business News
