Where’s the Accountability?

Late last week JPMorgan Chase announced that it had lost some $2.3 billion, and possibly more, as a result of bad investment decisions made by its risk-hedging operation. Predictably, some have seized on this misstep to call for greater regulation of the banking industry.

White House spokesman Jay Carney said: “The president fought very hard against Republicans and Wall Street lobbyists to get Wall Street reform passed . . . I think that this event merely reinforces why the President was right to take on this fight and why we still need to make sure it’s implemented.” Massachusetts Democratic Senate candidate Elizabeth Warren released a new radio ad warning, “Wall Street isn’t going to change its ways until Washington gets serious about strong oversight and real accountability.” Paul Krugman called JPMorgan Chase “an object demonstration of why Wall Street does, in fact, need to be regulated.”

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