National News

May 14, 2012 11:43 AM by AP

White House says bank loss shows need for rules

ABOARD AIR FORCE ONE (AP) - The White House says a $2 billion trading blunder by JPMorgan Chase shows the continued need for rules that protect the taxpayer when Wall Street makes mistakes.

White House press secretary Jay Carney says the loss is a reminder of why controls installed after the 2008 financial crisis are necessary, and why they should not be undermined. He says "Wall Street lobbyists" are trying to gut those protections.

Carney told reporters traveling to New York City with President Barack Obama on Monday that Washington can't prevent "bad decisions being made on Wall Street." But he says government can protect taxpayers from taking the hit in the form of huge government bailouts. He notes that in this case, it's the bank and its shareholders taking the hit.

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