(NEW YORK) — Just hours after a top JPMorgan Chase executive retired in the wake of a stunning $2 billion trading loss, President Obama told the hosts of ABC’s The View that the bank’s risky bets exemplified the need for Wall Street reform.
“JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we’ve 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.”
Furthermore, if a powerhouse like JPMorgan is hit by an error that the bank’s own CEO called “egregious,” the president questioned what might happen to smaller institutions.
“This is one of the best managed banks. You could have a bank that isn’t as strong, isn’t as profitable managing those same bets and we might have had to step in. That’s why Wall Street reform is so important.”
While touting his efforts to rein in the Wall Street behavior that led to the massive taxpayer bailout of the banks following the financial crisis, Obama noted his administration is still fighting for tough reform.
Pivoting to November, the president said Wall Street reform is one of the many critical areas where he and his Republican challenger, presumptive GOP nominee Mitt Romney, have a different vision for the future.
The president’s full interview will air Tuesday on The View at 11 am (ET).
Copyright 2012 ABC News Radio
Sam Turner, Deseret News
Ahiza Garcia, CNN