Former U.S. Senator Christopher Dodd weighed in on JPMorgan Chase's much-publicized trading loss Thursday, pointing to it as validation of the need for the landmark financial reform legislation he co-authored.
Meeting with a reporter after a speech in Moscow, Dodd said that the estimated $2 billion JPMorgan Chase (JPM) 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 so-called Volcker rule would be implemented.