Former U.S. Sen. Christopher Dodd weighed in on JPMorgan Chase's highly publicized trading loss, pointing to it as validation of the need for the landmark financial reform legislation of which he was a co-author.
Meeting with a reporter after a speech in Moscow on Thursday, Dodd said that the estimated $2 billion JPMorgan lost on trades made by its chief investment office is proof that Congress needed to take action to prevent large banks from taking excessive risks.
The Dodd-Frank Act, which Dodd co-wrote with Rep. Barney Frank, D-Mass., includes a provision that would place significant restrictions on banks' proprietary trading, though regulators are still working out the details on how the Volcker Rule would be implemented.
"This was a big deal, it might have sounded like a minor glitch but there were some major commitments made here," Dodd told Reuters when asked about the JPMorgan trade. "It is indicative to me of the importance of the legislation that I co-authored."
Dodd now heads the Motion Picture Association of America.