Obama: JPMorgan loss proves need for bank rules

AP News
Posted: May 14, 2012 7:44 PM
Obama: JPMorgan loss proves need for bank rules

President Barack Obama says JPMorgan Chase's $2 billion loss in high-risk trading demonstrates the need for the Wall Street rules that Congress passed two years ago. Many of the rules are still being written and have not taken effect.

Obama says the bank's loss also illustrates the sharp differences between his view of government and that of Republican challenger Mitt Romney, who has called for less stringent regulations than those contained in the new law.

Obama made his remarks during an appearance on ABC's "The View," a daytime talk show. The interview will air Tuesday, but a portion appeared on ABC's "World News With Diane Sawyer."

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Obama argued that while JPMorgan could withstand the loss, a smaller bank could have been so damaged that it would have required federal assistance.