WASHINGTON — A key House Republican said on Wednesday that the $2 billion trading loss at JPMorgan Chase raises crucial questions about how banks control their risks. But Republican lawmakers rejected calls from Democrats for stricter oversight of Wall Street.
Rep. Shelley Moore Capito, R-W.Va., chairwoman of the House Financial Services subcommittee, noted the loss during a hearing about how best to regulate banks big enough to bring down the broader financial system.
The panel’s hearing on a key tenet of the 2010 regulatory overhaul was scheduled well before JPMorgan revealed its trading misfire last week. But the trading loss was featured prominently at the hearing.
Rep. Spencer Bachus, R-Ala., chairman of the full committee, said he’s not worried about JPMorgan’s trading loss affecting depositors or taxpayers. Still, Capito said the loss raises questions.
“Where did the lapses in internal risk controls within (JPMorgan) occur? Were federal financial regulators aware of the positions JPMorgan was taking?” she asked during the hearing. The Associated Press
