Obama uses JPMorgan loss to defend Wall Street regulations

Taking aim at Republican opposition, he says Congress must back oversight to avoid another financial meltdown.

By Lisa Mascaro, Washington Bureau, LA Times
10:08 PM PDT, May 19, 2012

WASHINGTON — Aiming squarely at GOP critics of Wall Street reform, President Obama said Saturday that investment bank JPMorgan's stunning $2-billion loss serves as a reminder of the importance of Washington's role in preventing another financial crisis.

The 2010 financial overhaul law counts among Obama's signature legislative achievements, but it continues to come under attack by Republicans in Congress and on the campaign trail, including likely presidential nominee Mitt Romney, as an example of government overreach.

"It's so important that members of Congress stand on the side of reform, not against it, because we can't afford to go back to an era of weak regulation and little oversight, where excessive risk-taking on Wall Street and a lack of basic oversight in Washington nearly destroyed our economy," Obama said in his weekly radio address. "We can't afford to go back to that brand of 'you're-on-your-own' economics."

The losses announced by JPMorgan Chase & Co. have reignited debate over the government's role in regulating the financial industry.

Republicans have sought to delay or dismantle key provisions of the 2010 Dodd-Frank law, calling it a prime example of this White House's over-regulation of private markets. Romney has said he would repeal the law and replace the new regulations with a more streamlined approach.

(More here.)