So Romney Wants to Repeal Wall Street Reform?
From TPM. This scandal may shake things up in the Presidential race.
A surprising development on Wall Street Thursday could magnify a little-discussed but key difference between President Obama and Mitt Romney — one with enormous consequences for public policy.
On a conference call with analysts, JP Morgan CEO Jamie Dimon announced that his firm had lost $2 billion investing in the same species of derivative that exacerbated the 2008 financial crisis.
Dimon claims the company is prepared to absorb the loss, but it puts the reputation of one of the only big firms to weather the 2008 financial crisis directly on the line.
This is exactly the type of major loss of depositor money that the Obama administration sought to ban with one of the major planks of its 2010 Dodd-Frank Wall Street reform law — the Volcker Rule, named after former Fed chairman Paul Volcker. And that’s bad news for Romney, who wants to repeal the whole law, Volcker Rule and all.