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The Senate Banking Committee has yet to decide whether it will call JPMorgan Chase officials to testify about the firm's $2 billion trading loss, according to a committee source.
May 14 -
The Massachusetts Democrat argued following the $2 billion loss at JPMorgan Chase that it's time to bring back the division between commercial banking and investment banking.
May 14 -
White House Press Secretary Jay Carney told reporters Monday that the $2 billion loss "reinforces" the need for the 2010 reform law.
May 14 -
A big trading loss at Chase has some community bank CEOs discussing a second tier of regulation for small banks. Other CEOs believe the snafu is yet another black eye for the banking industry. And some point out that the loss is fairly insignificant to the New York company.
May 14
WASHINGTON — Republican lawmakers Tuesday tabled a set of bills that would curtail new financial regulations, after a more than $2 billion trading loss at JPMorgan Chase & Co. (JPM) was widely seen as bolstering the argument in Washington for stricter oversight of Wall Street.
The House Agriculture Committee Chairman said he was postponing a Thursday meeting to consider three derivatives-regulation bills to "ensure there are no unintended consequences of the legislation."
Committee Chairman Frank Lucas (R., Okla.) said the legislation the committee was set to consider had nothing to do with the trading loss at JPMorgan.
"As always, Washington has a tendency to overreact," Lucas said in a statement.
The bills would scale back parts of the Dodd-Frank law, the regulatory overhaul that Congress passed to rein in Wall Street after the 2008 financial crisis.
One of the bills proposed changing part of the law that would require banks to separate trading desks that trade in complex derivatives called "swaps" from the rest of the federally backed bank. Another bill would restrict the international reach of U.S. regulators in the derivatives markets.
The losses at JPMorgan, caused in part by a derivatives trader in London, have reignited debate about Dodd-Frank, which banks have been pushing back against since the law was passed in 2010.
Most of the law's main provisions, including those that might have affected the JPMorgan trades, haven't yet been implemented as regulators continue writing the rules.
The committee didn't say when the meeting would be rescheduled.
