Obama reiterates call for Wall Street finance reform
Barack Obama has backed under-fire JP Morgan boss Jamie Dimon by calling him one of the best bankers in America.
But the US president said the finance giant’s shock $2 billion-plus trading loss proved the need for change in banking.
Wall Street reform was one of Obama’s signature domestic policy achievements - but he has encountered opposition in trying to implement and enforce it.
Following the announcement of JP Morgan’s gaffe, for which its chief investment officer has left the firm, the American president warned the same kind of error at a less stable bank may have needed government intervention.
“JP Morgan is one of the best managed banks there is,” Obama said on ABC's ‘The View’.
“Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting.”
“Since these banks are insured, backed up by taxpayers, we don't want risks where eventually we might end up having to bailout again - because we've done that, been there, didn't like it,” said Obama, adding that was exactly why reform was “so important”.
With Obama confirming the bank is going to be investigated, Dimon encountered a grilling from unhappy JP Morgan shareholders yesterday at the firm’s annual meeting.