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Obama On JP Morgan: ‘This Is Why We Passed Wall Street Reform’
Obama On JP Morgan: ‘This Is Why We Passed Wall Street Reform’
President Obama told the hosts of a pre-taped episode of ABC’s The View that the JP Morgan trade fiasco exemplified the reason why he pushed for Wall Street reform, according to ABC News:
Watch below:
http://livewire.talkingpointsmemo.com/entries/obama-on-jp-morgan-this-is-why-we
President Obama told the hosts of a pre-taped episode of ABC’s The View that the JP Morgan trade fiasco exemplified the reason why he pushed for Wall Street reform, according to ABC News:
“JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting,” the president said. “We don’t know all the details. It’s going to be investigated but this is why we passed Wall street Reform.”
Watch below:
http://livewire.talkingpointsmemo.com/entries/obama-on-jp-morgan-this-is-why-we
Occupy the SEC agrees.
<...>
Dear Sirs and Madam:
Occupy the SEC1 submits this comment letter in response to the above-mentioned regulatory agencies’ (“Agencies”) notice of Proposed Rulemaking (“NPR”, “Proposed Rule”)2 implementing Section 619 of the Dodd-Frank Act (“the Act”).3
<...>
The United States aspires to democracy, but no true democracy is attainable when the process is determined by economic power.4 Accordingly, Occupy the SEC is delighted to participate in the public comment process for the implementation of Section 619 of the Dodd-Frank Act by the SEC, Federal Reserve, OCC and FDIC (.“the Agencies.”). This country.’s governing principles of transparency and due process mandate that any rules implemented by our regulators comport with the democratically-elected legislature.’s intention to protect the people from the widespread banking abuses and excesses of the recent past. We believe the Volcker Rule is important to the future of the banking industry and, if strongly enforced, will help move our financial system in a more fair, transparent, and sustainable direction. Prohibiting banking entities from engaging in proprietary trading and banning their sponsorship of covered funds are key elements to regulating the financial system and giving force to the Dodd-Frank Act. At its core, the Volcker Rule seeks to make sure that if a banking entity fails, it does not bring down the whole system with it. We appreciate the momentous challenges that the Agencies continue to face in effectively implementing the Rule, and we present these comments to assist them in their task.
- more -
http://www.occupythesec.org/letter/OSEC%20-%20OCC-2011-14%20-%20Comment%20Letter.pdf
Dear Sirs and Madam:
Occupy the SEC1 submits this comment letter in response to the above-mentioned regulatory agencies’ (“Agencies”) notice of Proposed Rulemaking (“NPR”, “Proposed Rule”)2 implementing Section 619 of the Dodd-Frank Act (“the Act”).3
<...>
The United States aspires to democracy, but no true democracy is attainable when the process is determined by economic power.4 Accordingly, Occupy the SEC is delighted to participate in the public comment process for the implementation of Section 619 of the Dodd-Frank Act by the SEC, Federal Reserve, OCC and FDIC (.“the Agencies.”). This country.’s governing principles of transparency and due process mandate that any rules implemented by our regulators comport with the democratically-elected legislature.’s intention to protect the people from the widespread banking abuses and excesses of the recent past. We believe the Volcker Rule is important to the future of the banking industry and, if strongly enforced, will help move our financial system in a more fair, transparent, and sustainable direction. Prohibiting banking entities from engaging in proprietary trading and banning their sponsorship of covered funds are key elements to regulating the financial system and giving force to the Dodd-Frank Act. At its core, the Volcker Rule seeks to make sure that if a banking entity fails, it does not bring down the whole system with it. We appreciate the momentous challenges that the Agencies continue to face in effectively implementing the Rule, and we present these comments to assist them in their task.
- more -
http://www.occupythesec.org/letter/OSEC%20-%20OCC-2011-14%20-%20Comment%20Letter.pdf
Occupy the regulatory system!
Posted by Suzy Khimm
NEW YORK — Occupy Wall Street has moved. Its new address: 60 Wall Street.
<...>
Kline, a former Wall Street trader-turned-Occupier, is a member of Occupy the SEC, an offshoot of the large movement that has burrowed deep into the regulatory process. At this moment, she’s trying to figure out if the drafting of the Volcker Rule — a provision of President Obama’s Wall Street overhaul that would restrict commercial banks from making speculative investments that do not benefit their customers — is tight enough to keep banks in check.
After much discussion, the group agreed that the Volcker Rule’s earlier definition of clearing agencies, which banks use for exchanging futures contracts, was “clear and tough and good,” but decided that it was worth double-checking section 17(a) of questions that the Commodity Futures Trading Commission raised about it.
<...>
While the Dodd-Frank act of 2010 provides a blueprint for the new regulations on Wall Street, it’s up to federal regulators to determine precisely how these guidelines will be put into effect. The regulatory process is intended to provide transparency into this process: Regulators will typically issue a preliminary version of a new rule and then allow for outside feedback during a public comment period.
Anyone is allowed to weigh in. But industry groups, lawyers and lobbyists issue an overwhelming number of formal comment letters to regulators, as they tend to have the most money, resources and technical expertise...Occupy the SEC aims to be a counterweight to this deep-pocketed lobbying push. Over the past six months, the Occupiers have slogged through the 300-plus pages of the Volcker Rule to figure out how the regulation would work in practice and whether it would — or could — come anywhere close to what its authors had intended.
- more -
http://www.washingtonpost.com/blogs/ezra-klein/post/occupy-the-regulatory-system/2012/04/27/gIQAjo21lT_blog.html
Posted by Suzy Khimm
NEW YORK — Occupy Wall Street has moved. Its new address: 60 Wall Street.
<...>
Kline, a former Wall Street trader-turned-Occupier, is a member of Occupy the SEC, an offshoot of the large movement that has burrowed deep into the regulatory process. At this moment, she’s trying to figure out if the drafting of the Volcker Rule — a provision of President Obama’s Wall Street overhaul that would restrict commercial banks from making speculative investments that do not benefit their customers — is tight enough to keep banks in check.
After much discussion, the group agreed that the Volcker Rule’s earlier definition of clearing agencies, which banks use for exchanging futures contracts, was “clear and tough and good,” but decided that it was worth double-checking section 17(a) of questions that the Commodity Futures Trading Commission raised about it.
<...>
While the Dodd-Frank act of 2010 provides a blueprint for the new regulations on Wall Street, it’s up to federal regulators to determine precisely how these guidelines will be put into effect. The regulatory process is intended to provide transparency into this process: Regulators will typically issue a preliminary version of a new rule and then allow for outside feedback during a public comment period.
Anyone is allowed to weigh in. But industry groups, lawyers and lobbyists issue an overwhelming number of formal comment letters to regulators, as they tend to have the most money, resources and technical expertise...Occupy the SEC aims to be a counterweight to this deep-pocketed lobbying push. Over the past six months, the Occupiers have slogged through the 300-plus pages of the Volcker Rule to figure out how the regulation would work in practice and whether it would — or could — come anywhere close to what its authors had intended.
- more -
http://www.washingtonpost.com/blogs/ezra-klein/post/occupy-the-regulatory-system/2012/04/27/gIQAjo21lT_blog.html
14 replies
= new reply since forum marked as read
= new reply since forum marked as read
Your Quote from President Obama:
“JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting,” the president said. “We don’t know all the details. It’s going to be investigated but this is why we passed Wall street Reform.”
to show he's not out to get them. Maybe he is, maybe he isn't, but he's not tipping his hand......
"You should actually read what Occupy the SEC wrote."
...I understand clearly what "loophole" means. Do you? A loophole can be closed. The key point is that the law made significant changes, but some issues still need to be addressed. Some of these issues can be addressed in the rule-making process. The focus of group's letter is to strengthen the rule.
Merkley: J.P. Morgan’s Trading Losses Show Need for Strong Volcker Rule
Washington, DC- Oregon’s Senator Jeff Merkley, cosponsor of the Merkley-Levin provision in Dodd-Frank that put into law the Volcker Rule, issued the following statement after news that J.P. Morgan lost at least $2 billion in portfolio hedging trades made by their risk management division.
http://www.merkley.senate.gov/newsroom/press/release/?id=14790A0A-6018-4331-AF15-7D8B842C9CF8
Washington, DC- Oregon’s Senator Jeff Merkley, cosponsor of the Merkley-Levin provision in Dodd-Frank that put into law the Volcker Rule, issued the following statement after news that J.P. Morgan lost at least $2 billion in portfolio hedging trades made by their risk management division.
“What yesterday’s announcement makes abundantly clear is that even J.P. Morgan, supposedly the best risk manager on Wall Street, can make bets that go spectacularly wrong. This is exactly why the banks that our businesses and families depend for loans should not be in the hedge fund business.
“Moreover, it is essential that bank regulators issue rules that do not permit hedge fund investments by Wall Street banks to be disguised as ‘market making’ or ‘risk mitigation,’ as this case so dramatically demonstrates.
"I ask, once again, that regulators implement without delay a Volcker Rule as intended by Congress, with a clear, effective firewall between hedge fund-like trading and traditional banking.
"American families and businesses should not be subsidizing these types of risks or victimized by these types of losses. We need a wholesale change of culture at our banks and at our regulatory agencies, which is precisely what the Volcker Rule firewall is intended to create."
“Moreover, it is essential that bank regulators issue rules that do not permit hedge fund investments by Wall Street banks to be disguised as ‘market making’ or ‘risk mitigation,’ as this case so dramatically demonstrates.
"I ask, once again, that regulators implement without delay a Volcker Rule as intended by Congress, with a clear, effective firewall between hedge fund-like trading and traditional banking.
"American families and businesses should not be subsidizing these types of risks or victimized by these types of losses. We need a wholesale change of culture at our banks and at our regulatory agencies, which is precisely what the Volcker Rule firewall is intended to create."
http://www.merkley.senate.gov/newsroom/press/release/?id=14790A0A-6018-4331-AF15-7D8B842C9CF8
"How many times have I warned you over the years that Dodd-Frank would do nothing to prevent the next crisis? Even if it ever gets fully implemented, it will be ineffective."
You've warned me? Are you serious?
