“Nearly two years after the signing of a major law to boost oversight of Wall Street, two Democratic senators are calling on President Obama to speak out even more strongly in favor of a new federal rule that they say should have banned the trading that led to JPMorgan Chase’s $2 billion or more loss.”
“But Obama is in a difficult spot. Although he introduced and supports the Volcker Rule, which bans banks from gambling with their own money, regulators have yet to finish writing the rule and haven’t determined whether the trading would have violated the draft version of the rule that has been released.”
“’Given that the Volcker Rule has been violated by JPMorgan in this wild bet and given that Treasury is point on it, there certainly is some political risk to the president if they actually don’t come out with a rule, come out with one quickly, [or] come out with one that doesn’t favor Wall Street,’” said Dennis Kelleher, president of an advocacy group called Better Markets.”
“He added, if the rule ‘allows Wall Street do what JPMorgan did, it’s a complete failure and there should be a political price.’”
Read full Washington Post article here.