Obama: JP Morgan issues show need for banking reform

15 May 2012

Recent problems seen at JP Morgan Chase provide solid evidence as to why the government had to intervene and change the rules in the US banking system, Barack Obama has said.

Last week, it emerged that the company - which is America's largest financier with assets worth around $2.3 trillion - had lost a minimum of $2 billion during a failed hedging strategy.

This debacle - which chief executive Jamie Dimon admitted had left "egg on our face" - resulted in chief investment officer Ina Drew, who oversaw this initiative, to retire from her role with immediate effect yesterday (14 May).

And during an interview with the ABC show The View scheduled to be broadcast later today, President Obama stated the fact this issue has emerged at one of the country's "best-managed banks" makes the need for change clear.

"We don't know all the details. It's going to be investigated, but this is why we passed Wall Street reform," he said.

By Asim Shah

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