Share this article

print logo

Obama says $2 billion loss shows need for rules

President Obama said Monday that JPMorgan Chase's $2 billion loss in high-risk trading demonstrates the need for the Wall Street rules that Congress passed two years ago.

Many of the rules are still being written and have not taken effect.

Obama said the bank's loss also illustrates the sharp differences between his view of government and that of Republican challenger Mitt Romney, who has called for less-stringent regulations than those in the new law.

Obama made his remarks during an appearance on ABC's "The View." The interview will air today, but a portion appeared on ABC's "World News With Diane Sawyer."

Obama argued that while JPMorgan could withstand the loss, a smaller bank could have been so damaged that it would have required federal assistance.

Obama's remarks were echoed earlier in the day by White House spokesman Jay Carney, who defended the Dodd-Frank financial reform bill.

"Ever since it was passed, there have been millions and millions of dollars spent by Wall Street lobbyists trying to water down, delay and render ineffective the rules that have been put into place," Carney said. "The president has fought that. This merely reinforces why the president was right to take on this fight."

Obama also tried to tarnish Romney as a corporate titan who got rich by cutting, rather than creating, jobs, opening a new effort to undercut the Republican's assertion that his background of business success is just what America needs in a time of deep economic uncertainty.

At the center of the Obama campaign effort are a new website, TV ad and online video including interviews with onetime workers at a Kansas City, Mo., steel mill that Romney's former private equity firm failed to successfully restructure. Workers lost jobs and health care benefits. Pensions were reduced.

"It was like a vampire. They came in and sucked the life out of us," says steelworker Jack Cobb. Added John Wiseman: "Bain Capital walked away with a lot of money that they made off this plant. We view Mitt Romney as a job destroyer.

Romney's campaign, meanwhile, aggressively worked behind the scenes to counter the Obama campaign's Bain message.

It released a Web video about a successful steel company that Bain invested in called Steel Dynamics. The video shows steelworkers describing the company as the embodiment of the American dream, noting that the company grew from a workforce of 1,400 to more than 6,000. That video was not immediately planned for television.

Romney also dispatched Ed Gillespie, a senior campaign strategist, to a conference call with conservative bloggers Monday to respond to the Obama ad. The campaign planned to frame the attacks on Romney's record at Bain as an "attack on free enterprise" and to cast the auto bailout as an example of private equity at work.

Romney advisers predicted the attacks on the presumptive Republican nominee's record at Bain would backfire because most voters understand that some business ventures succeed while others fail.

There are no comments - be the first to comment