Posted on 05/16/2012 11:33:23 PM PDT by Olog-hai
A key House Republican says the $2 billion trading loss at JPMorgan Chase raises critical questions about how banks control their risks. But Republican lawmakers rejected calls from Democrats for stricter regulation.
Rep. Shelley Moore Capito, Republican chairman of the House Financial Services subcommittee, noted the loss during a hearing about how best to regulate banks big enough to bring down the broader financial system.
Lawmakers said a firm's character should count when regulators determine if they are "systemically important financial institutions." Such a designation would subject them to a stricter level of oversight.
The panel's hearing on a key tenet of the 2010 regulatory overhaul was scheduled well before JPMorgan revealed its trading misfire last week.
Republicans on the subcommittee denounced the overhaul's requirement for financial firms to be tagged as "systemically important." They said it really means a firm is considered "too big to fail"—the doctrine that brought taxpayer bailouts of Wall Street during the 2008 financial crisis.
"These firms will never fail," said Rep. Spencer Bachus, the Republican chairman of the full Financial Services Committee. …
(Excerpt) Read more at hosted2.ap.org ...
The federal government can kiss my arse. The idiots who run that apparatus lose TRILLIONS every year. They make the capitalists at JP Morgan look like AMATEURS at losing money.
They weren’t going to fail and even if they did, the pieces would be bought up. A&P grocery stores used to be an economic juggernaut...but they eventually became a shadow of a company. But there were plenty of other grocery stores that rose up to take its place.
Government has no business deciding what companies fail or succeed.
No they don't!..but they do have a duty to prevent monopolies that are to the detriment of “We the People”
when Glass-Steagall was in place...No bank could be big enough to hold the US hostage for their losses!!!!....It was common sense!
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