WASHINGTON — The White House said Monday that the huge trading loss by JPMorgan Chase & Co. highlighted the need for tough regulations, blasting Wall Street efforts to weaken new rules in the 2010 financial reform law.
“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,” said White House spokesman Jay Carney. “The president has fought that. This merely reinforces why the president was right to take on this fight.”
Carney’s comments were the first on-the-record statements by the Obama administration after JPMorgan reported a $2 billion trading loss last week.
The Dodd-Frank financial reform law is one of President Obama’s major accomplishments. On Monday, the White House joined other supporters of the legislation in using JPMorgan’s embarrassing disclosure to urge regulators not to give in to efforts by Wall Street and many Republicans to weaken or repeal the law.
“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,” Carney said.
Carney, speaking with reporters on Air Force One, would not comment on investigations by regulators into the JPMorgan trading. Obama traveled to New York City on Monday for a college commencement address, TV interview and fundraising.
Carney strongly defended the need for tougher financial regulations to avoid future taxpayer bailouts.
“We can’t prevent bad decisions from being made on Wall Street,” Carney said. “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.”
©2012 the Los Angeles Times