Carney: JPMorgan loss proves Obama 'right' to push financial reform

White House press secretary Jay Carney said that in the wake of JPMorgan Chase's $2 billion trading loss, it's "amazing" that some — including presumptive GOP nominee Mitt Romney — are still looking to repeal the president's Wall Street reform law.

Speaking to reporters Monday, Carney said the staggering loss reinforces the need for the Dodd-Frank financial reform law and the president's call for tougher financial regulations.

ADVERTISEMENT
"The president fought very hard against Republicans and Wall Street lobbyists to get Wall Street reform passed," he said, according to a pool report.

"This merely reinforces why the president was right to take on this fight," he added.

Carney did not mention Romney by name, but the president's reelection campaign jabbed at the GOP front-runner over the weekend, as the nation's largest bank was still reeling from its big trade gone wrong.


"Mitt Romney has been clear that he would repeal Wall Street reform, an engraved invitation for Wall Street to return to the biggest, riskiest bets that crashed the economy, destroyed trillions of dollars of wealth, and cost millions of workers their jobs," said campaign spokesman Ben LaBolt, according to Bloomberg.

Romney has repeatedly called for the repeal of Dodd-Frank on the campaign trail, but his campaign highlighted his belief in "the importance of oversight and transparency in the derivatives market" once JPMorgan's trade attracted headlines. It also noted that Romney believes some provisions of the law have merit.

Carney also pointed out that Dodd-Frank was never intended to prevent trading losses on Wall Street, but simply to protect taxpayers from bearing the brunt of them. In JPMorgan's case, he said, the appropriate parties were paying the price for the bad trade.

"We can't prevent bad decisions from being made on Wall Street," he said, adding, "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."

Congressional Democrats have used the trading loss to renew their push for tough implementation of Dodd-Frank, as regulators are still writing the rules making the overhaul a reality. In particular, lawmakers said the multibillion-dollar drop proved the need for a strict "Volcker Rule," which is aimed at preventing banks from making risky trades for profit.