Romney supports Dodd-Frank repeal: How will he address J.P. Morgan Chase fiasco?

Romney supports Dodd-Frank repeal: How will he address J.P. Morgan Chase fiasco?

Washington : DC : USA | May 14, 2012 at 12:48 AM PDT
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Ben LaBolt Interview with Piers Morgan (April 24, 2012)

Mitt Romney says he wants to talk about the economy in his presidential campaign, including his call to annul the Dodd-Frank financial regulation law. J.P. Morgan Chase & Co. (JPM)’s $2 billion trading loss in risky transactions is not the sort of tête-à-tête he had in mind.

Hitherto, Mitt Romney presumptive Republican nominee, has whispered little about the transaction that is stirring up Wall Street and Washington, prompting an inquiry by the Federal Reserve, an insistence for a congressional investigation and a demand by Elizabeth Warren, a Democratic Senate candidate in Massachusetts, that JPMorgan Chief Executive Officer Jamie Dimon resign from the board of the New York Federal Reserve.

Stu Rothenberg, editor of the nonpartisan Rothenberg Political Report said: “Anytime you have a development that suggests businesses take unnecessary and unwise risks, you give ammo to Democrats and cause problems for the Republican narrative” he said, “I think Romney will have to deal with it.”

Romney, pioneer of private-equity firm Bain Capital LLC, has spotlighted his vow to repeal the Dodd-Frank law that aims to reinforce financial regulations, calling it one of numerous excessively onerous laws supported by President Barack Obama that costs jobs. Romney has not directly commented on the JPMorgan losses since Dimon unveiled them on May 10; he overlooked a reporter’s shouted question about the matter at a May 11 rally in Charlotte, N.C.

Mitt Romney’s ‘common-sense regulation’

Andrea Saul campaign spokeswoman had remarked in a statement the losses demonstrated “the significance of oversight and transparency in the derivatives market,” and that Romney as president would “push for common-sense regulation that gives regulators tools to do their jobs, and that gives investors more clarity,” she said.

Obama’s campaign spokesman Ben LaBolt reply

“Mitt Romney has been clear that he would repeal Wall Street reform, an engraved invitation for Wall Street to return to the biggest, riskiest bets that crashed the economy, destroyed trillions of dollars of wealth, and cost millions of workers their jobs,” LaBolt said.

Obama has sought greater regulation, signing the Dodd-Frank law and asking for more funding for the Commodities Futures Trading Commission as it works to implement the new laws.

‘Necessary Elements’

“Better transparency for inter-bank relationships, improved capital requirements, and provisions to address new forms of complex financial transactions are all necessary elements of effective financial reform,” the intended plan says. “But these concepts must be decoded into law in a way that craft a simple, predictable, and efficient regulatory system suitable for our dynamic economy.”

As the presidential race has heated up, Romney has focused on his repeal proposal without elaborating on the parts of the law he backs.

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Romney undertaking Dodd-Frank Repeal
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Jason1984 is based in Washington, North Carolina, United States of America, and is an Anchor on Allvoices.
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