FROM CNN's Jack Cafferty:
JPMorgan Chase’s $2 billion trading loss highlights what could be a huge Wall Street problem for President Barack Obama as he faces re-election.
Nearly four years after the financial crisis, little appears to have changed on Wall Street.
These guys can still play fast and loose with whatever rules there are and in the process risk huge losses.
JP Morgan's CEO Jamie Dimon was on "Meet the Press" on Sunday doing damage control. There have already been several resignations at the company.
Dimon acknowledges the $2 billion loss was due to a series of massive bets placed through credit default swaps - which is what nearly brought the country to its knees in 2008.
In other words, what happened at JP Morgan, one of the largest banks in the U.S., is exactly the kind of thing the president's financial law was supposed to stop. But it didn't.
Working in Obama's favor - he can paint his opponent, Mitt Romney, as a big business guy who would slash financial regulations.
But voters will hold up the president against his record - and ask how this could happen again. In light of the mess at JP Morgan, it will be nearly impossible for Obama to run as the president who got tough on Wall Street.
Critics of the president say the White House should have pushed for stronger legislation - and that financial reform took a back seat to the health care and stimulus bills.
They say the president had a historic chance to bring real reform to Wall Street since there was such intense public anger toward the banks.
Administration officials argue Obama pushed for the toughest financial reform law that he could get through Congress.
Here’s my question to you: How big is President Obama's Wall Street problem?
Tune in to the Situation Room at 5pm to see if Jack reads your answer on air.
And, we love to know where you’re writing from, so please include your city and state with your comment.
Wall Street isn't the President's problem, it is the nation's problem. Until Banking, Insurance and Investment companies are totally separated and regulated, the same shady practices will continue. This will eventually destroy the country.
As big as Romney's. You sure said it right Wall Street is a problem. Whoever is in power the problem is still there. Wall Street does not like rules yet they have proven time and time again they do not have enough to keep them in line. Most of the problem on Wall Street is it's not thier money so who really cares lets just see how much money we can make off of the money of others.
How big is President Obama's Wall Street problem?
What is president Obama's Wall Street Problem, Jack? The fact that the GOP refuses to allow passage of regulations? If so that is a problem with the GOP in CONGRESS not the president. Or the issue that are happen in countries like Greece that he has no control over? Which is it Jack??
BTW All of my stocks have done nothing but go up since Obama was elected so I don't see that Obama is a problem when it comes to Wall Street.
Considering that Obama got a lot of financial support in the last election from Wall Street he might be in a crunch for funds this time around. You don't bite the hand that feeds you unless you have a new owner waiting in the wings..
It's a white elephant,evvery body knows now that he should have let those who would have fallen to fall and that the "help" was needed on main street. He helped big business stay on their feet and they will help knock him off his.
Not as big as it should be. Wall Street knows that both parties have been bought and paid for. Their not worried. No one has been charged for a crime in the great meltdown. The "Streets" only fear is of the future. What will a second term bring.
Not his problem , wall street steals the money during all presidential terms.
Wall Street is a problem for Romney not the president. Republicans will no longer be able to filibuster regulation. Even Jamie Dimon now admits there is not enough regulation. Dodd-Frank needs to be restored in toto especially the Volker Rule.
obama does not have a problem with wall street he has got more money for his re election more than any other pres.
Obama's criticism of Wall Street plays well with a vast majority of the American people. Even the Tea Partiers aren't big fans of Wall Street and all the bail outs.
So much so, if Obama ties Romney and Bain Capital closer to Wall Street, I think it'll hurt Romney. Obama can turn Romney's image from a "businessman" to a "scam artist" and "job killer."
Pretty big since he wants to regulate them and they all like Robme because he will set them free to do as they darn well please.
The word insurmountable comes to mind Jack. Wall Street's been around for over a century. Obama's been around a bit over 3 years. He's a flash in the pan - here today, hopefully gone in November. Obama criticizing Wall Street is like the pot calling the kettle black - or maybe it's the other way around.
Gary in Scottsdale, Arizona
It's a big problem for all of us...but he and the federal regulators are the only ones who can DO anything about it! Since the debacle of 2008 the "solutions" have amounted to the band-aid on a broken leg. Not surprising since the rich folks buy the government...paying everybody in sight to do their bidding and to ignore their malfeasance. And, yeah, another round of bank mess-ups and Obama is toast. Romney had better have a good "plan" ready, just in case.
Martha, Rew, PA
Wall Street is not going to throw all their campaign finance money at Romeny, sit back, and hope and pray Mitt wins. That would be to much of a gamble. Hmmmmm. On second thought maybe they might. It would be a given, a decade or more ago, Wall Street would hedge their Presidential pick bets and give equally to both sides. So maybe Obama will miss out on the big contributions from Wall Street this time around, but I doubt it. I think in the end, Obama will get his fair share of the money from Wall Street. All the big special interest groups give equally to both sides. Thats why the big special interst groups always win, and the common citizen always loses under this system, when they vote. Doug, Pepperell, MA.
The problem isn't simply Obama's problem – you can be sure that Romney and the Repubs will try to paint it that way. The Dodd/Frank bill was watered down to appease the Republican Senators and the Tea people in the house. It's a Washington problem – Washington has long catered to Wall Street before the rest of the country. I think I read somewhere "you reap was you sow". It definitely applies here.
Considering he only payed lip service complaints while allowing them a reprieve through financial reform and credit card reform while playing golf with them and allowing wall st to write laws, i dont see how he is in trouble...
It's more than the President's problem; it's the nation's and the people's problem. There is really nothing the President or the people can do about it. It's our Oligarchy at work. Wall Street is the real constituency of the congress. And it's not likely to change soon.
There would be no problem if congress would reinstate Glass-Steagall. But, oh hell no! Free enterprise, baby!! Thank you, Sandy Whyle(Citi group), Robert Rubin and you too Bill Clinton for a job well done!!
How big is the Wall Street Problem or Obama"s Wall street Problem ?- there is a difference-first and formost Obama does not have a Wall Street Problem-Wall Street has the problem -Every time this president has tried to do something, the Repulicans havve knocked it down- Wall street has to clean itself up- all the Republicans and Wall Streeters want is $$$$$
The voters were not happy about the last sacrifice of Main Street for Wall Street.
A dismal 4-years of ineffectiveness; and now, J.P. Morgan!
Memories of bailouts and bank failures bode ill for Obama's re-election without more–once again.
I keep hearing people who appear to know or SHOULD know say "nothing has changed". If the fox is still watching the hen house don't expect any eggs.
The 99 are correct but just imagine if the GOP gets its way; It will be like letting the fox run loose in the chicken coop.
The Wall Street problem wont be fixed until wall street is prevented from buying our politicians. Since Reagan was in power, or should I say Regan, corporations have been buying out our "Representatives" and the finical sector is no exception. I don't see how Obama (how much did citi give him again?) or any President can do anything now with a do nothing congress.
I think Wall St. is its own problem. It is a monster of greed, by greed and for the greedy. It has one moral (laugh, laugh) value, the bottom line. It deals in goods, bads, services and anything that will make lots of bucks. The only people that count are at the top. Sounds an awful lot like Congress, which is a good and bad they pay for. Notice how the people hurt the most by our recent downturn was the people at the bottom of the income spectrum. Why do these people still have jobs and collect bonuses and stock options? Three people have resigned is the latest Wall St. fiasco so I guess the CEO will get another few additional millions for another job well done.
Pursue the plan that Ron Paul and Ralph Nader have introduced: Tax securities derivatives speculation on Wall Street for a change and reinstate Glass-Steagall! Yet neither Obama nor McCain wanted to pursue that option back in '08. These bad bets is what also caused MF Global to collapse a few months ago and many Americans simply don't understand what derivatives are. It is estimated that the global derivatives market is over $500 trillion dollars. The entire world's GDP is only about $70 trillion. So what is going to happen when that bubble bursts? This $2 billion loss for JP Morgan Chase will look like chump change when that bubble eventually pops! – John in Los Angeles
Why is this JUST Obama's problem? This situation was created by all the Washington politicians over the past 8-12 years. Wall Street has been given a carte blanche by the powers in DC. It appears that no one has the guts to hold them accountable and until that happens, all us will continue to pay the price.
I don't believe the general public really see what happened much beyond the end of their nose, I.e. jobs. The somewhat more informed see their investment and retirement deminished or at risk, but I really wonder if they understand the economy and what drives it any better that the President appears to. Let's face it people, he blew it. Are we any better off now than we were before he took office? No. "... another day older and deeper in debit. Saint Peter don't you call us cause we can't go. We owe our sole to ..." to the Chinese! And, the President does not seem to have the horse power to do anything about it except make it worse.
HUGE, Jack. I won't vote for him or any other Democrat this fall. They had a unique opportunity to enact some meaningful legislation to reign in these big banks and other financial institutions and stem the bitter anger that resulted from the crisis. The agenda of the President and the Democratic Partyy is really no different than the agenda of the big corporations...the only difference is one wants votes while the other just wants profit, bonus, stock option and huge salaries. I've thrown in the towel. These guys just don't give a rat's ass about most of America cares about. Frankly, I just don't trust them. What will be the next faux pas that is announced...it's only a matter of time.
In my mind the Wall St. problem belongs squarely in the Republicans lap. They did everything they could to undermine legislation and what gladly dismantle all regulation if they could. This latest debacle should serve as a strong warning to voters as to what they expect with Romney in the White House and those good ol' GOP "fiscal coservatives" in Congress. We had the Great Depression and the Great Recession. Next the Republican Party will bring us the Incredible Implosion. Ya gotta love it !
The JP Morgan loss isn't a problem for Obama, the problem for Obama is his Treasury Secretary and his Attorney General. That nothing has happened in the area of prosecution for the activities that led to the financial crisis says that Obama only cares about campaign contributions and not about what's right for our country. Unfortunately, if no one notices his continued inaction, it matter a whit, just as JP Morgan doesn't.
Obama does not have a wall street problem. Obama is owned by wall street and does exactly what they want. If he really cared about main street he would break up the big banks, repeal glass/stegal which allows banks like chase to gamble in the derivatives market with 0% interest money from the federal reserve, abolish the 600 trillion dollar derivatives market, regulate hedge funds, raise the capital gains tax rate back to individual tax rates, tax wall street bonuses at 100%, prosecute banks and wall street ceo's for the 30 trillion dollars they stole from the economy, fire geithner and shave bernankes beard for transparency. Obama does not have a wall street problem he has a main street problem. Where is the hope and change for main street?
Pssst Jack. Wall Street owns the Democrats and the Republicans so it would only be a problem if Ron Paul was a credible candidate. Goldman Sachs is the one thing both parties seem to agree on. Go figure!
Rules, rules, "we don't need any stinken rules." This is the mantra of Wall Street. They play like a chess game, and you better plan a great number of moves ahead to head them off at the pass. Obama must have gotten tired of the game, while the Republicans kept playing the waiting game.
WHY in the WORLD would it be JUST Obama's "PROBLEM"? the Republicnans have blocked EVERY banking reform measure since the 2008 crash that the Obama administration and Democrate Senators and Congressmen have preposed. I watch that FRAUD Jamie Dimon of JPMorgan-Chase yesterday on Meet the Press and HE syas "he's all for Wall Street Reform" and "ending too big to fail" YET the industry lobbies AGAINST it in Washington.
you think the banks get away with murder NOW, Mr Cafferty. just watch what happens IF Romney is elected with a Republican Senate and House. it will be a financial "Pirates of the Caribbean" on Wall Street.
When the President proposed a more robust stimulas package but settled on a package which could have been considered anemic because Congress would no go along with the larger amount. Then there was Health Care Reform. The president again had to settle. And there was Wall Street/Financial markets reform. Again the President has to settle and again we have questions and pundits saying that Obama should have done more. When do the voters wake up and acknowledge that the President can only do so much with a Congress thats hell bent to see him fail. The President is caught between a rock and a hard place in that he's wrong for asking Congress for too much and he's wrong for not asking for enough.
I think the problems on Wall Street are huge. I do however, think if most Americans actually think and red about the positions taken by each party, President Obama has nothing to worry about. In reality though, most people will probably remain ignorant of the issues and vote according to sound bites and commercials they hear and see.
Jack, it's not just Obama's problem. It is ours. The main problem is that these momolithic institutions have enormous political money and clout. That power buys influence from politicians that despise government regulations on anything related to their so-called "free market" philosophy. That means watered-down regulations for financial interests, safety and health. I believe in private enterprise, but not when it grows much too large to have the American people as their main imnterest.
Given what voters rightly expect of Romney, Obama has no Wall Street problem at all. It's the country that has a HUGE Wall Street problem which shows no sign of ever being fixed.
That was under BUSH'S watch if it happened in 2008, why didn't he fix it? Our president didn't take over until Jan. of 2009. The Republicans blocked all bills he put forth.
You can bet your money that if Romney wins, that everything will be deregulated and you will see much more of this happening. Also remember Bain and the companies, that Romney closed and sent jobs overseas?
Remember that Romney has his savings in Swiss banks and in the Carribean, somehow I don't think he trusts America.
It is not only the Presidents problem, but also our representatives on Capital Hill..It seems the Republicans in Congress, (the party of business) would like no regulations, or actions that affect business, even in the face of fraudulence on Wall Street and the banks.
More important, how big is President Obama's problem with Wall Streets influence on the Congress? After all, the the Buck stops there, bypassing the Oval Office.
Jack, as long as regulators are not as smart as and get paid less than traders, it doesn't matter who the President is. Wall Street will always create new ways to make gobs of dough until they get caught. Then, they'll create some new thing and do it again. Always way ahead of the money police.
Carol in Northampton, Ma
How big is President Obama's Wall Street problem?
Answer : This country almost was brought to it's knees in 2008. Just wait til this country actually falls down. 1929 will repeat itself, but in a much worse way, I suspect. Why ? because in 1929 – 1930 – we weren't almost 16 Trillion in hock. Right now, there are some people in this country that have been pulling their resources out of the stock market, and as time goes by, more and more people will be doing this. Obama's wall street problem won't go away, Just wait til he or Romney (whomever it will be nxt yr) asks the American working people of this country for more bailouts, or more stimulus, or if they can find a word that has not been used, that will mean printing more money that we don't have, and giving it to the big businesses, or Banks, and paying for it with taxpayer money.
Vote Democrat – 2012
JP Morgan is not asking to be bailed out so and even with the 2 billion in loses, they still were profitable for the quarter.... Enough already! We have enough regulations to strangle our entire economy..... Let's move on!!
Who says it's just Obama's problem? Wall street greed and absurdities are all our problem and the sooner we elect a congress not in their pocket the better we'll all be.
Jack, Jack, Jack,
Why is everything President Obama's problem? I realize he is the President, but if Congress sets the legislation, then why are you not questioning them as well? Let's just have President Obama write the legislation and sign it. Congress is useless anyway. And, I would think Willard has more of a problem with Wall Street since he wants to repeal Dodd-Frank and just let Wall Street run wild. I understand is Wall Street is not contributing to the President the way they are to Willard, because the President hurts their wittle feelings and Willard will let them have their way.
Joi S. Gibson
West Palm Beach, FL
Not so terribly big that he will loose New York, Connecticut or New Jersey, which is what really matters. Obama will raise more than enough money to beat Romney, who is in enough trouble with Latinos that he may lose Texas. Once that is obvious, Wall Street money will flow back into Democratic coffers. I hope Obama has the good sense to send the check back.
It's a bigger problem for the Republicans than the President, at least for those not already caught up in being told to hate the man.
The stated goal of the Republican party is to limit Obama to one term. In doing so they have zip concern about doing what was needed to have prevented the J P Morgan mess or anything else that might have a negative effect on the country.
You have it turned around, Jack. Wall Street resents the President and the Democrats for trying to reign-in their risky and distructive behavior and, in response, they say they are against Wall Street and the business community. Not true. They came close to taking the county over the cliff three years ago and it cost American citizens their savings, pensions and homes and this last episode with JPMorgan is further proof that nothing much has changed. I trust the President a hundred times more than any Wall Steet banker whose motto seems to be "I need to make myself a lot more money and if it ruins you life – tough!"
The problem is big. That tells you that you should not have voted for a community organizer, with no business sence, for the Presidency. That's is why you need someone at the helm that knows what they're doing. That's why Palin did not run for the office. She knew she didn't have a chance. Let's not make the same mistake in November. .
when your the only one in the room trying to bring financial sanity back to the unite states,and the money scammers keep putting up walls,takes time to knock them down
the only walls these people should see is prison walls
Jack this is just all more smoke and mirrors anyway. Wall street was not reformed it was placated. All Obama and congress had to do in order to appease voters was simply appear to do something. They did not actually have to accomplish anything worth while. That is how our government works. It only needs to have an appearance of propriety over a problem. A few billion dollars later they sweep the problem under the carpet get re-elected and move on to the next round of smoke and mirrors. Houdini would be proud of these congressional magicians.
It is pretty big, but he isn't directly to blame for it. Look to congress, especially the Republicans who have either defanged or blocked the legislation to try to get the mess fixed. No one is innocent on this one.
The question should be, "How big is Mitt Romney's Wall Street Problem?" The Democrats can't fix it because the Repulicans do not want it fixed. Repairing Wall Street would have to be a bipartisan effort – good luck on that one!
It's an American/Republican problem. It's an American problem because we're all in this together. It is specifically a Republican problem because they keep fighting tooth and nail AGAINST regulations.
You can't have it both ways–you can't blame the lack of regulation on the President and aschew him in favor of Romney, who is an avowed Lafferite. If you don't go for Obama you're going to get the reckless policies of George W. Bush, the ones which caused this problem, the policies that refuse to go away.
Why is this Obama's problem? Congress makes the laws. Perhaps you people in the press should quit trying to pretend that our president is some god like figure that snaps his fingers and makes things happen with no involvment from anyone else. Like the president can get the house to do anything he wants, Republicans are giant obstructionists who are praying for America's downfall, because they hate a black man.
Your question implies that J.P. Morgan is going to blame President Obama for their 2 billion dollar loss and that voters are going to go along with this premise. Also implied is that somehow President Obama is a shill for Wall St. bankers because he really didn't want to push harder for reforms that would prevent these risky bets. On the contrary, this foolish debacle will not go to waste as it will be placed squarely on the lap GOP hopeful Romney.
No Jack, it is a problem with Vulture Capitalism. You are not much of a help. Don't really watch you anymore. By the way, it is President Obama, Jack!
It is only as big as you make it to be. The thought of Pres. Obama in bed with Wall Street is ludicrous. That said, Wall Street knows the likely outcome of the 2012 election, and is betting on the come. Barack Obama will get four more years.
It could be a tough problem for the president, Jack, but then we all remember how republicans stood up and fought against any kind of regulation and are still fighting to derail and defund the weak regulations that were passed. I'm sure we'll hear more about republican obstruction as we get closer to the election.
Much bigger than the gay-marriage smokescreen he released last week. Having procrastinated the Wall-Street issue in favor of healthcare reform may not only cost him a second term, but the eventaul collapse of his signature accomplishment in a double-dip recession fueled by a second wave of irresponsible unregulated trading behavior.
BO will say and do anything to be re-elected. He will not mention this or them if they give him enough money. If they give to the opposition, they will end up on his hit list.
As bad as Wall Street is, I don't see President Obama losing votes over this. After all, the other guy is essentially the personification of the interests of the kind of big business that created the financial crisis.
About the same as it is for the congress, since they are the ones who could have actually done something aout it.
I don't think the problem lies with the President, but with Congress that refuses to do anything about this problem, along with others. They want to blame the President for any and all problems, but they need to reform the laws that allow these companies to play loose and fast with money and expect others to pay the cost.
This highlights the administration's misguided priorities and efforts. Give it some time and more things will unravel. All show and no go! These guys have focused on nonsense while Americans are struggling and Wall Street is having it's way with the American people.
This is just one of many problems he has. No credibility. Doesn't take responsibilitiy, doesn't show any inate ability to help or run the country.
As big as the RNC and the media make it. After all, Obama is too blame for everything, right? I believe this to be correct as I am sure Congress and the RNC have run several studies to prove it. Also, Limbaugh and O'Reilly swear to it each and every day. So, It must be true if they say it is. Right?
The new temple for the money changers can be found on Wall Street. It's going to take more than a whip made of cords to drive them out.
Wall Street is a problem for not just Obama, but all Americans! How those cowboys can be allowed to risk our money on gambles that they certainly won't use their own money for is incredibly shocking. An example must be made by suing their own personal wealth and would go a long way toward curbing this behavior.
Bigger than anyone can ever imagine.
I believe Obama's people have done all they can to regulate the banks. But the banks have done all they can to resist regulation, and use regulatory arbitrage to find ways around whatever regulations are put in place. I believe Obama can make the case that the GOP wouldn't have even tried to put any sorts of limits on the banks, nor would they do so in the future. Since 2008 and the aftermath wasn't enough to bring about change in the banking industry, what kind of catastrophe will it take before we stop putting our livelihoods at the mercy of the "too big to fail" banks?
Jack, are you serious? If the Republican passed Obama's original Volcker Rule, you wouldn't have this JMC fiasco today. The Volcker Rule was stripped down by the Republican to favor big banks. Are you seriously blaming the president for that?
The question you should asked is: How big is Republican's Wall Street problem? They are the one that against all regulations. Time after time, they're proven wrong.
Are you kidding me Jack? It's the Republicans that have either killed, staled, or watered down any attempts at regulating Wall Street (or anything else for that matter). This problem rests at the feet of the GOP, not Obama.
Wall Street's a problem for everyone.
Really, Jack? JP Morgan Chase bought this one, it comes out of their pocket. Tough on Wall Street? He did try, but just like everything else that went through the GOP Majority House....Nothing, "NO!". Why don't we talk about the GOP and how the would rather see their own constituents suffer, than pass an Obama Jobs Bill! They are hurting their own constituents, they don't care about anyone but Big Oil and Banks! I wouldn't doubt they try to pay Chase back for their own blunder! The GOP just says NO and brings a Bill in just like Obamas' but loaded with pork and Social Cuts, they aren't serious and they know ahead of time it won't pass!
Last November after the GOP made it impossible to pass a Budget, a super committee conveined with equal number of Democrats and Republicans to pass a bipartisan budget and if they didn't, it would ring in drastic cuts in Social Programs and Defense. The GOP could not compromise their unrealistic Tea Party goals and the Super Committee failed.
DOD made the cuts demanded in the deal and presented them to Congress only now to hear the GOP will not live up to their promise! But of course not, that would be biting the very Military Industrial Complex hand that feeds their re-elections and more???
The GOP cried Cuts, The Dems gave them, now they won't cut Defense! They are Partisan Hacks who do not care about the people of the United States, even their own, How about Obama runs on that!
I fail to see how Wall St will be a problem for Obama.
It was GWB who pushed for the further deregulation of the banking system that Clinton had started (somewhat more mildly than what GWB did) and the Federal Reserve and SEC who should have been monitoring this debacle are largely out of the President's control.
Obama has been pushing for tighter control of the banking system, but has been getting pushback from the GOP.
If anything, Obama's record on banking should help him with this fiasco with JP Morgan.
President Obama does not have a Wall street problem; he has an economic problem. The U.S. economy has no hopes of expanding strongly as long as voters keep him in the White House. His anti-business rhetoric and policies generate uncertainty, which tamps down hiring and investment.
This one happened on his watch, when he had control of both houses of Congress available to prevent it. The "Bush/Republicans did it" excuse won't fly this time. The President is happy to take Wall Street's money with one hand, while pretending to use the other to beat them with a limp stick.
It is sad that while Obama pushed for the reform laws the Republicans continue to block any effort to restrain or hold accountable private banking interests, due to the large donations and financial input by business blocks and particularly J.P. Morgan Chase. Is it not interesting that you have not heard a peep from the Republican side of the House and Senate.
Dear Obama supporters: Please explain your support given the fact that Goldman Sachs has been one of the top donors to the campaign, the administration has many Wall Street insiders in high positions, and that few of the perpertrators of the economic collapse have been prosecuted.
Obstinate Republicants are the problem.
Credit default swaps were illegal 11 years ago and still should be. Don't blame Obama for a law passed 11 years ago (bank moderation) and still supported by the same people in congress that passed it and defend it still. Obama can't control congress no should he be able to. The people in congress who created this mess should be the ones held accountable.
Why is it President Obama's problem that the GOP wants to act like bunch of spoiled children who just had their toys taken away? They're making it the country's problem, and they couldn't care less. Maybe you should be asking Boehner, Cantor and Ryan why the Volker Rule is still not in place.
No bigger than any DC politician's Wall Street problem – they're all bought and paid for. We need campaign finance reform and term limits. Of course those who could put this into action are also the same ones who benefit from the status quo. Oh well, gotta love politics – not.
Wall Street is a problem for everyone except for those on Wall Street.
Its a huge problem, but a much lower stock market value and higher unemployment in the fall would be a bigger one. All these social issues that play in the press mean little when it comes to the independent voters, its the economy...... President Obama may have to green light Israel if he really wants change the focus.
Funny when you see people in the Obama administration who have made money off of Wall Street and worked on Wall Street. Media love affair with Obama knows no limits.
If Obama had had a fillabuster proof senate he probably would have gone a lot farther but when 60% is what it takes to get anything through the senate I'm amazed he has gotten anything done.
Banks are a bigger problem for Republicans, who are commonly perceived to be supporters of big banks. Big banks are on-going criminal enterprises, like drug cartels. They are not going to go quietly. We need to stay on them. It will take years.
Blaming a president, any president, who has done what they can to stem the tide of corruption on Wall Street instead of blaming Wall Street itself for continuing to find ways around responsibility and accountability is, to be blunt, beneath you.
Send the Paddy Wagons down Wall Street, lock them all up and problem solved.
Of course it's his fault ... if you're stupid. So, when are the Republican's going to give him credit for gas prices coming down?
Jack why Romney and GOP is not saying anything about it. They want to deregulate wall street . Be care full with GOP agenda.
For the law to work, it has to be enforced. Kind of tough when Congress is fighting you tooth and nail. And Romney is still arguing against tougher regulations. I'd say he's got the harder argument.
I am more concerned for people trying to feed their families than for President Obama or, for that matter, any other politician. We can only hope the economic and social stratification in America yields a greater generation, equipped to encounter the most dubious distinction of having less than those who came before them. We are on our own Jack, and we will be the better for it.
he's doing well.for himself.how much money did and will he get from wall street?
Hugh problem for people paying attention. Seems like "blame the Republicans" for all the problems seems to forget that the President had a full house and senate of Democrats for the first two years and did nothing about the Wall Street problem. He had the choice to devote his time to Wall Street problem or Health Care. He choose the wrong path. We won't forget in November.
Wall Street is a problem for ALL AMERICANS...as long as the investment banks are allowed to pocket profits and pass along losses, the economy will remain a tail wagging a dog. De-regulation got us here and the Supreme Court's Citizens United decision assures that we will stay in this sinking ship until the citizenry wakes up and amends the constituion so that corporations are not treated as citizens (with special rights) and bribery is no longer mistaken as 'speech'.
I don't see how you can blame the President when he spoke against this pretty strongly. He has been fought, tooth and nail, to pass in substantive law to help the country get better, so Dodd-Frank may have been the best that could past at that time. This highlights how weak that bill/law is, and how now, stronger regulation, what the President was calling for, is needed. At some point, he could have played the middle. He had the capitalist and free marketers crying about financial regulation reform, and how it will damage the economy, along with the republican party. He tried to "compromise", trying to satisfy the many, not the few.
The Wall Street problem isn't just Obama's. It belongs to the Republican's as well. In fact, I'd say they are more to blame since they block every single measure that the President puts before them. If Obama doesn't get re-elected in November alone with a new crop of Senators and Representatives that are will to come to the table, put their heads together, and stick their nose's to the grindstone, and come up with some solutions this problem will be everyone's more so than it already is. And, probably to a catastrophic degree.
The problem is finance is a complex issue and the very worst thing we can do is think that politicians can fix it. I pray to god the voters don't expect Obama to fix it. He's about as qualified to deal with it as an 8th grade B- student. He was a Community Organizer for Christ Sake. Stop expecting him to have the answers to anything
Wall Street is down the list of problems that President Obama faces in November but anyone who truly believes that his opponent has a better idea on how to bring change on Wall Street is delusional. The average working person in the U.S.A. has virtually no voice in Washington since they have neither the money or the clout to even get an answer to a simple question.
It may not be much of a problem at all. He is too good a politician (and I don’t mean that in a good way). He will probably be able to spin it, blow smoke at us and hold up mirrors and a lot of us will still vote for him.
I know the media wants to blame President Obama for everything but this question doesn't make sense. The media tells us constantly that Wall Street hates the president and will not contribute to his campaign. Yet, he is supposedly responsible for JP Morgan's $2 billion dollar loss? Not only is the president not responsible for this mess, he is advocating tightening the rules to prevent this mess. His counterpart, Mr. Romney is in favor of further deregulation, allowing banks to write their own rules. Perhaps you have Mr. Romney confused with Presiden Obama.
It's no problem Jack....these habitual gamblers on Wall Street are so smart that they've created a new complicated risk instrument called an Election Default Swap – they hedge their bets by buying off both parties so that they continue to operate without proper legislation and controls regardless of who wins. No change on Wall Street.....means no change left for us poor slobs on Main Street
The President should have done something about Wall St. But then again he should have had Bush and Cheney arrested for treason at the inauguration before they got away for lying us into a war for the profit of their friends. But electing Romney to fix Wall St.? You might as well appoint Whitey Bulger as attorney general. Like I always say, "in the land of the blind the man with one eye is President."
Obama does not have a Wall Street problem. Wall street is the problem. Obama had a choice of doing Health Care reform or reforming Wallstreet. He decided health care was more important than Wall Street reform. This shows we cannot depend on Wall street to regulate itself. Deregulation will never work. Regulation has become a necessary evil.
Sure it's a problem, but really it should be a problem for JP Morgan. Providing taxpayer insurance for companies to make these "bets" without real consequence is the problem. The taxpayer money should be insurance for the taxpayers' money; not JP Morgans. If the bank makes lousy decisions, let it fail.
Blame, blame, blame. I see by most of the posts Obama gets another free pass. Wow, this guy is so lucky. If I had Obama's luck, Id go to Vegas for the weekend.
This sort of thing shouldn't be happening,and it probably wouldn't have happened If the President's proposed financial regulations had not been thwarted and watered down by the Republicans in Congress. Just three years after the Wall Street meltdown, Financial industry lobbyists have been screaming "the sky is falling - Dodd-Frank wlll end capitalism as we know it, blah, blah blah." Of course if we listen to Wall Street, I predict the next melt-down will happen in 2015.
Do you honestly think that these banks would make such risky bets if all their deposits weren't FDIC insured? They wouldn't. Perhaps we should go back to the days where the government didn't intervene and people picked banks because they were safe. There is a huge moral hazard when government steps in and protects the banks with FDIC and bailouts. We need a banking sector that reflects real market forces. Government effectively removes the market force of due diligence because nobody cares – they're going to get their money back no matter what and the banks know it.
I'm trying to think of a campaign promise Obama actually kept...wait...it will come to me...oh yeah, he's running for reelection...I'm pretty sure he promised to do that?
it is squarely bank and its investor problem. Like Dimon said, he favors the fair game: take thosse responsible to justice, fire the management, fire the board, dismantle the company, and buried its name.
Wall Street is our problem. We voted for the Congressmen who are fighting Wall Street regulation. Now we can suffer the consequences of our mistake, or we can go back to the polls in November and vote for candidates who are willing to work with Obama to find workable solutions to our problems.
The only way this problem ever goes away is when we start marching these greedy idiots down wall street in handcuffs
for all the world to see.
Obama has a huge problem. Did we not learn from our past issues with these risky bets? This was a speculative bet. Obama administration was on watch, time for change, time for new leadership.
Jack, it's the economy, stupid. America is tired of high gas prices, high unemployment rates and bailing out the "too big to fail" wall street firms. JP Morgan writes of $2 billion in immensely stupid mistakes that Obama said would never happen again after he and the democratically controlled house and senate enacted legislation to stop these risky and stupid practices. His stance on the LGBT community means little. A putrid economy that is teetering closer to Greece 2.0 every day will be his downfall. And no, Romney isn't going to solve it either.
not much compared to it being a problem for Romney. First, he's "one of them" , second apperantly he has little trust on the street since the markets started downward when he locked up the nomination. "Better the Devil you have than the Devil you worked with...".
Let me fix that for you, Jack: How big is perpetual candidate Romney's Wall Street problem?
The answer is enormous. What we have is the poster boy for Wall Street greed and excess that wants to take us back to the same failed Bush policies of no regulation and the pie-in-the-sky theory that big banks and corporations left to police themselves is perfect and there'll be nothing but roses. Wrong! Their ethics begins and ends with profit, not doing the right thing. Let's be real, Jack, the GOP kicked screamed and obstructed having real teeth in the Dodd-Frank bill. Again let's be real and not try to play this down the middle, the American people deserve better journalism. If we want no regulations on business so that they can wipe out our pensions, pay us slave wages, and pollute our air and water, vote GOP. Me, I like my pension, fair pay and clean air and water so I'm voting Democratic. It is what it is, let's be thruthful.
The Presidents Wall Street problems are getting worse, but he and the Congress, personal friends, and business colleagues are making millions off of the bailouts and this is what they are concerned about. They will use their "insider trading connections" to bailout out of the collapsing markets early, then make millions more by re-entering the market when it bottoms.
Our Elected Officials are operating the worlds largest "organized crime syndicate" that is monitored and manipulated by the Lawyers & the business sector, and their primary source of income is extortion through the financial markets, which includes employee's paychecks & benefits.
Remember the Wall Street Reform package of 2009 and then the Reduced Wall Street Regulations of 2012 allowing for easier IPO's to begin? The President sponsored both of these programs.
Wall street is it's own problem. Hope it crashes and burns.
The $2 billion Plus loss in the hedging department of JP Morgan (Credit Default Swaps) is a prima facia case for reregulating the entire US Financial industry. The 1930's Glass-Steagall Act needs to be sent through Congress Again. It needs to be the law of the land again. The unregulation of the Financial insudtry that occured during the Reagan, Clinton, and George W. Bush administrations needs to be completely undone. If we are to prevent the $670 Trillion in Credit Default Swaps from being called in – as they were in JP Morgan's case – then we need tough new regulations for commercial banks (Bank of America), investment banks (Goldman Sachs), and insurance companies (AIG). The top ten banks in the US need to be slit up. There can be no longer too big to fail. The Republicans, lead by Mitt Romney, and CEO's, and millionaires and billionaires are all wrong. Too much regulation is not the problem with American business. The problem is way too little regulation. We can no longer rely on businesses and the Republicans and the rich to regulate themselves.
It's a huge problem, but since the other choice will willfully dismantle regulations on wall street, his inability to get things through congress is more a frustration than an electoral liability. Then again, that assumes that the public actually understand what's going on and not just basing their vote off of sound bites, slogans and bumper stickers.
Deregulate Buisiness! So they can just raid your bank account without the worry of incumbering laws slowing them down. What is Capitalism without mass poverty to support it?
A better question would be who profited from J.P. Morgans loss? What are there affliations and who do they make their campaign contributions to. Follow the money.
Regulations don't work for Wall Street, President Obama needs to add a stiffer penalty, Federal prison.
Americans are so angry at Wall Street and so fed up with the corruption and greed that if the President could have every financier drawn and quartered, all normal Americans would crowd the booths to vote for him. Wall Street types and Tea Partiers would still vote for the opposition of course, even if it were Satan with the Antichrist as a running mate.
That's easyJack. Big!Wall street owns this country and if they don't get their way they will sell this country. It has happened once or more times .Every time the govt. adds a regulation they cause a selloff.kinda like a warning shot accross the bow of their employees(America)!
Wall Street owns Washington D.C. No problem.
Hi Jack, this isn't Obama's problem it's the Board's problem. Dimon needs to be escorted from the building with his belongings in a cardboard box but of course we know that the JPM Board of directors lack the courage to do what's right in terms of sending a message to the rest of the management team and the other clowns that run banks in this country. JPM and little Jamie have become nothing more than a joke – pathetic
Obama has a huge problem in that he is pro-social programs and anti-business. He has never run anything but his mouth off in condemning big business and theri profits. Now the chickens are coming home to roost. His policies has created such a high level of uncertainty, that business will not invest and grow until he is out of the white house. He will of course blame Conngress, blame Bush, blame Republicans but what he doesn't realize that the American public does is that when you point your finger at someone else, there are 3 fingers pointing right back at you.
Why are we wondering if Wall Street affects politics, presidential or otherwise?? The Pres doesn't do much here and besides I don't think Wall Street is doing all that badly for stockholders, right? That's because the big companies whose stocks and bonds are traded on exchanges have figured out that they don't need as many employees to serve the reduced demand they have, SO they are more profitable and their stocks are doing just fine (current down turn excepted, but read EU problems here, not pure domestic company problems) Small companies, the job producers, are doing lousy. But the stocks on "Wall Street" are for mid size and biggees, and they are held by private investors AND by private company and public pension fundsso that means that MORE THAN HALF of the nation's families benefit. So "Wall Street" is much more of an individual issue for us rather than a political issue. Oh, you say "regulations" are politically important? That is – whether there are a lot of them or a little of them. Ha! The Street just hires more lawyers and accountants to figure out ways to get around those regs, so don't even worry about having too many or too few. Non issue. And as for political contributions,... again, not to worry. Our pres and his opponent will have little trouble raising enough. Let's talk about the debt. Now there's a real POLITICAL ISSUE where the Congress mostly and the President to a lesser extent can and must have a plan. Or else in a generation or less we're going to be like Greece or Spain is now. There is only ONE issue now – solving the debt problem. Keep on that theme, Jack.
Isn't Mitt Romney bragging to everyone,...who dares to listen to him.... about all his Wall Street buddies?....and thanks to that he's gong to save the US economy ..... let me try to translate this charade...."when Wall Street collapses is President Obama's fault".....but....when the DOW indicator reaches record levels is thanks to his Wall Street buddies despite President Obama's socialist policies.... he plays the double face all the time....now "pardon mon ignorance"....a Mormon friend from Oregon told me once...when he was trying to convert me to his "cult"...that a Mormon can have as many wives as they can afford or support.....can somebody tell me if that's true??....because if it is....MAN !....that means Romney is a serious piece of work...."marriage is between one man and one woman".....
Must not b very bright. Did not know one person, even if President, could make laws alone. Are the republicans now ready to control Wall Street and the banks. Please let us know. All we have seen is the Billionaires taking all for themselves at our expense.
So long as Republicans refuse to cooperate with Democrats it is they who are to blame for the mess the country is in not Obama.
The problem is greed. These fat cats want it all to themselves. Unemployment could go down a few percentage points if they would give up their million dollar salaries and bonuses and hire people. Instead they squeeze every last once of work from people that are working. These people don't care about anyone one or our country. They aren't patriots their greedy idiots.
It's huge and there is no way Obama can dodge it. In the aftermath of the financial collapse, when Wall Street was begging for bailouts, when *everyone* agreed that the repeal of Glass-Steagall and the laws permitting derivatives caused it, all of those looney ideas from Lawrence Summers, Clinton's Treasury Secretary. Obama did absolutely nothing. Worse, he used Summers in a policy making role, compounding the problems AND Obama used Wall Street insiders and their advise in permitting Wall Street to run amuck and destroy the economies of Greece, Spain, Portugal, Ireland, Iceland, Italy, etc. Those collapse are leading to a wave of government failures and the real risk of a global depression, all sweeping onto our shores before the November General Elections. Obama is toast.
what does it matter what I or the rest of the voters say here jack? We arent lobbyists. Our bank accounts are not big enough to have an opinion that counts
Seeing every Republican in Congress and every Republican candidate for President want to repeal Dodd-Frank I'd say it's their problem. For the rest of us it just gives more weight to what Obamba has been saying all along.
Leave the rich to do as they will and they will do it to all of US!
Huge. Really big.
It's a Catch-22. When President Obama tried to reform Wall Street after they nearly destroyed the global economy, they called him a socialist for interfering with the economy. Those same people complain that the president isn't doing anything about the economy. I have read a few books about what happened in 2008, and I think I have a pretty fair understanding of what went wrong. Hopefully more of us who get their information from books rather than bumper stickers will vote in November.
Unlimited corporate bribes are the problem.
Campaign reform is the solution.
Corporations are not people because corporations are not locked up for breaking the law.
When you have an opposition party that is apsolutely against anthing you propose to do, it is impossible to get anything done. And that is what Obama faced for the last 3 years.
This is another of the CNN headers that tries to dump all blame for all the wrong things on President Obama. We know that his efforts to regulate Wall Street effectively has been thwarted time and again by the Republicans. Why not title it GOP problem or Romney's Wall Street problem? Its disgusting and pathetic in my opinion, slandering the president for other peoples' problems.
Jack, you refuse to deal in the historical truth, which is...................
Last 100 years.....GOP pres. have had a 1.3% APR/stock market and Demo pres. 14.5% 1008% better than the GOP
Last 20 years....US stock market up 21 trillion $ during 2 Demo presidencies and down 3 trillion during 2 GOP presidencies, a difference of 24 trillion, an amount which is 150% of the total US federal deficit..............Until you start dealing in reality, that the stock market loves Demo presidencies and absolutely hates GOP presidents (1929, Reagan's Black Friday, Bush's 8 yr. 4 trillion $ loss), your discussion of wall street is missing the point....we need Demo presidencies to offset the terrible stock market results delivered during GOP presidencies in order for our economy to survive.
Jack, I personally don't feel the president has a big problem with Wall Street, I think it's the other around. This is about who's on the right side of history vs the 'status quo'. This 2012 election will show a stark difference between money(1%), or democracy(99%), just like Wisconsin only on a larger scale. The president will get financial support for his re-election by the majority of people supporting our present, and future democracy. J.perk
Don't you mean "How big is Congress' problem on Wall Street"?
It's only as big as the GOP chooses to make it.
Dodd-Frank was a slap on the hands for Wall Street. As much as Obama places Wall street as the enemy. He knows the financial district runs America. So it would be like limiting every American's personal debt limit. In reality Obama plays a game of making voters appear he is doing something. While at the same time not tying the hands that feed Americas wealth. Its bed said over and over. Business runs America not our government. Wall Street is included in that.
Let's be honest Wall Street recovered quite nicely. How did our Government recover like Fanny and Freddie for example? Dodd/Frank never even addressed that whole issue. People can believe Obama is handling it, but I think most of us know better.
Jack, his Wall Street problem is not nearly as big as the un-informed rants of cable news commentators who throw him under the bus every chance they get.
I don't think it'll be a big problem, given I don't think people are paying attention. But Obama has filled his administration with pro-Wall Street men and women, even considering some of the CEOs that were at the heart of the problem, like Jamie Dimon. His DOJ has adamantly refused to prosecute the people at the center of the financial crisis, and I doubt JPMorgan will receive more than a slap on the wrist. Given all this, Dodd-Frank being the 'toughest law he could get through congress' is a disingenuous claim at best, and if people start to think about it, they'd be outraged. And frankly, if they are paying attention, they know that at least Obama hasn't tried to sell people on the idea that, "Corporations are people too, my friend," like a certain Republican candidate.
Jack, research would tell you this should be a problem for Republicans as they watered down the bill including the area that covered this fiasco and it was the lobbying of this CEO of JPM that fought really hard against regulation that would have helped minimize if not stop exactly what happened. Our President can only do what Congress will allow to get through and these days we are wasting our money big time as the Republicans filibuster everything even if they liked it since the President or Democrats bring it to a vote.
Wall Street is not Obama's problem, it is the businesses that work on these practices that are the real problem. Until we fix them, the only thing Obama can do is prevent as much of these practices as possible. That is, unless the Republicans are willing to compromise about it.
It just comes to show that businesses are willing to look for any loopholes to fund themselves to get rich, even if it is a risk to the nation.
I must have missed something,the president does NOT legislate, and the GOPTPers went berserk, on Elizabeth Warren, for speaking out against risky banking, she predicted it would happen again..... these banks are tooo big to fail, and that is definately a problem....Barney Franks bankinfg reform caught hell from the GOPTPers.......Congress must get their act together and fix this problem
You didn't do a very clear job of explaining Dodd-Frank and how it relates to this problem with JP Morgan. Yes the committee to oversee Wall Street and make sure the practices that spawned our current economic weren't going to happen again, or "too big to fail" wouldn't be on the lips of our politicians. But what you didn't explain with that very loaded monologue and question was that this committee along with so many others has been prevented from being staffed by Republican opposition. Dodd-Frank could have taken care of this problem if conservatives would allow it to, and Mitt Romney is one upping them by boasting he would repeal that law that could prevent these practices. So please don't mislead your viewers by leading them to believe the President's oversight measures aren't working, tell us why they aren't working, because this Republican party has done everything in it's power to make our government not work.
Mt. Shasta, CA
Don't expect much regulation of Wall Street from President Obama. He is accepting a lot of money in "contributions" from the Big Boys on Wall Street to look the other way. Obama just cares about getting reelected and he needs lots of money to do that.
Not a single regulation enacted since 2008, not a single prosecution. Is anyone surprised that nothing has changed? Obama works for Wall Street. He has no problem with Wall Street, and he never will, because he will keep on doing their bidding. He has a big problem with voters though, and I'm one of them.
Time to get the 401 K money again. Stimulus payments are the reality of this admin. If it is for poverty nothing Big banks again are too big to fail.
I think its a big problem for everyone.But I don't see how relaxing regulation is gonna make it better.There's allways someone who will be able to beat the system and break the rules.
BIG !!! But will disappear election time.
Jack, sometimes you disappoint me. The President signed the Dodd-Franks Bill to apply regulations to big banking. The Republicans would not even allow confirmation of the President's nomination to head up the Financial Stability Oversight Council. Big banks have riddled the bill with loophools through lobbying. Maybe we need to find out who, in congress, has taken that money from lobbyists. For three years we have listened to the Republican machine gun attacks that over-regulation is killing the economy. And, people don't understand why little has been done.
He is lost and so is Congress. These guys are playing them like a violin. Unless they find a way to separate the two types of banks, they will swing the bow.
The only ones who blame Obama are the ones who didn't vote for him anyways
Through bribery of both parties, Wall Street is creating a world-wide aristocratic elite that ignores the will of the people.
And history tells us time and again that aristocracies never end well, especially for the aristocrats.
The TEA party fears the U.N., but they ought to take a close look a little farther south on the island of Manhattan.
Unless the President gets more help in Congress in November, not much will change, since the Elephants want much less regulation. I think we just need more enforcement, not more regulations. I think the rogue elements in banking even fool the CEOs in charge. CDS transactions should be banned for what they are–creative paper shuffling. Look out for the guy holding the last paper swap! I bet these geniuses got big bonuses for their efforts.
Honestly, I doubt very much that this will effect Obama's campaign. If necessary, Obama's crew will somehow blame President Bush for it. Obama supporters will still vote for him writing this disaster off as just another example of the 1%'s greed. Indeed part of that may be correct because I find it hard to believe that this is just another case of dumb investing. Who profited from this debacle...WHO was GREEDY? Please include those in Congress as well as those at the bank.
To all those that say this is Congress's problem, I say that does this mean if we reelect Obama, he will keep using the same excuse when his agenda does not pass? We need a president who is strong enough and persuasive enough to deal with congress. By bringing the Congress 'doesn' work with me excuse' Obama is just compounding his incompletence. I have always voted democratic and was set to vote for Obama next November but now I think anybody would be a president than Obama. Maybe democrats should select a new nominee.
The President's 2008 political advantage to regulate Wall Street is long past. Since the 2010 election he is unable to do much as anything that smacks of a regulation. Any move to rein in the "gamblers" will be quickly buried by the GOP dominated House. This House is wall to wall banking lobbyists and their reelection bucks talk louder than the President or any measure of commmon sense. The greed and the obcession with more and more fast bucks drives Wall Street and they will never change unless sent to "regulation rehab".
The republicans should be to blame. They are so tight with big business, oil and the ultrawealthy that they act as one. They have blocked efforts to pass legislation and the appointment of talented people necessary to prevent another greed meltdown.
How can you blame the President for JP Morgan – You might as well blame every police department for every crime. Its ludicrous to even consider that somehow the President can control every action an instituition takes. Prseident Obama passed more bills to control Wall Street gambling then any president before but had to compromise with a republican congress that didnt want to pass any. To even ask this question shows a very simplified approach to the problem. Unbelievable.
I watched Jamie Dimond on a major national Sunday news program. A BA/MBA/CPA business management I was shocked how dumb he was given his job. Since I bank at that bank I was quite worried. Than he came out against the 99%, government bank regulation, and now he blows 2 billion dollars. When and how do you fire people like this? He is unqualified to be running my bank.
OBAMA is the biggest problem the United States has right now. He IS our worst nightmare. Wall St. will take care of itself, but Obama is destroying everything he touches. It is so obvious, one must wonder if it is by design.
This problem sits completely in the GOP's Wall Street coddling lap and for you, Jack, to ignore their relentless assault on Dodd-Frank and any other attempt at regulation is incomprehensible. Lets be absolutely honest here..is this a problem for the president...NO...it is something he can take to any intelligent voter and and shine a flood light on the many ways all efforts to reign in Wall Street have been sabotaged by the GOP congress with Romney cheering them on.
The problem is bigger than he thinks. This is why people are occupying wall street. There is something very wrong here and people are aware of it. There is to much waist in this country. Banks are a joke, but no one is laughing.
How big is Obama's Wall Street problem? No problem at all. Just look at his largest campaign contributors.
Relative to the JPMorgan problem and whether this weakens Obama relative to Romney - I'd say the Republican-controlled House picked a bad time to repeal the government's authority to break large banks when they fail (a provision of the Sequester Replacement Reconciliation Act, HR 5652). Seems to me Obama could use that fact to fend off criticism.
Tucson, AZ – Jack's critique misrepresents the system and how it works. Passing the Dodd-Frank bill was necessary but not sufficient. Congress must appropriate funds and confirm appointees so that the law can be put into force. Senator McConnell successfully delayed that until his party won back the House, and now it will not happen at all during this Congress. Credit default swaps were not responsible for the crash of 2008, just for the bankruptcy and bailout of AIG. The credit defaults themselves were on the blind CDOs backed by sub-prime loans. The real need is to draw a distinction between investment in things that have residual value, like companies and oil, and things that don't, like indexes and derivatives. Rich people should be allowed to gamble their own money and lose it however they see fit, but investment banks are gambling with other people's money and that should not be allowed. What is really needed is reinstatement of the Glass-Steagall law, which prohibits banks from investing in risky "securities." The first law of investing is that higher the rate of return the greater the chance of losing the whole thing. Safe investments pay lower returns. Duh!
Since it is the Republicans who advocate free markets, and free markets are unconstrained by government regulation, why is it Obama, a Democrat (barely, but still a Democrat) has "a Wall Street problem?"
How is this a problem or Obama??
He should double down on his call for reform. It is just this kind of malfeasance (or at least irresponsibility) that brought the country to its economic knees three or four years ago.
One must ask why the reforms introduced weren't enough to stop this sort of reckless activity (was what they did actually not permitted und Dodd-Frank?)..
The GOP (short for Greedy Old Pigs) deserves a lot of blame.
Jack, make up your mind.
If the banks make $2 billion dollars the Liberals say "The banks are making too much money and they need to be regulated by the government"
If they lose $2 billion dollars the Liberals say "The banks are losing too much money and they need to be regulated by the government."
Wall Street is the problem the nation has and they paid to have controls watered down so they could continue being Wall Street. They they stuck the screws to us once and now they are trying to do it again. It's not the Presidents problem. It is the nations problem
It's the greed of the filthy rich who care nothing for the person who labors with his hands.
Wall Street problems Jack? Most of us baby boomers have left Wall Street and the stock markets long ago – still shell shocked over the collapse. Obama should be focusing on Main Street - Jobs, the economy, deficit spending, the debt, social security, and medicare. Instead of talking about gay marriage and hurling insults at Romney, Obama should try actually leading the country, instead of continuing to vote "Present" and talking about anything and everything except the problems we face. I used to worry about learning to speak Chinese; now it looks like I need Greece as a second language. Come on Mr President – really come out of the closet you have been hiding in
His financial reform was seriously hampered by having to fight House Republicans to get enough votes. With a supportive Congress he could get the job done.
Does anyone understand? Government does not regulate Wall Street. It's the other way around. Graham Leach Bliley of 1999 dismantled what was left of any protections consumers had under Glass Steagall. Banking and government have been sleeping in the same bed with the same dirty sheets for decades. There will never be any meaning regulation to protect us from their crimes.
If congress had gotten their butt in gear and gotten something done instead bickering like little children when they don't get their own way, maybe President Obama might have accomplished getting regulations enacted on Wall Street. So I really don't think President Obama should shoulder all the blame. In my estimation congress is worthless and do not have sense enough to get out of the rain.
Jack, it is good to hear the [Democrat] CEO of JPMorgan edge even closer to the truth, and advocate for better regulation,
'course that move makes me even more suspicious. this-all is so well-choreographed. Next: with much fanfare, more regulation legislated..... tho less acted upon?
NOTHING; just another set of papers to be filed away in some dark archive.
Mr. Cafferty Sir:
Mr Obama might only be around for 4 years, even if re elected then 8 years, full retirement, protection...this is not his problem it is the taxpayer's problem and we have to pay salaries on top of this huge financial penalty. I guess we could conclude that two billions in loss by J.P. and the boys this past year is a drop in the abyss compared to the war or wars costing that much each month! To review for everyone, a billion is one thousand millions, really "change" for the patriot chumps.
Let me be an equal opportunity offender. Pres. Obama deserves some blame for lack of "effective" legislation. But, the "free enterprise" attitude of both parties for the last thirty years has turned capitalism on its head. Adam Smith defined capitalism as many buyers and many sellers. Since both parties have decimated the antitrust section of the Justice Department, we now have near monopolies in most industries. Prior to 1980 there were at least 15 oil and gas companies in the U. S. Now, we have 5 or 6 who have refused to attempt to build new refineries. Rather, they have close refineries and refuse to modernize existing refineries to refine something other than the easiest grades of oil to refine. Other countries buy types of crude oil at lower prices because they have modern refineries.
Banks and utility companies are now regulated monopolies. REINSTATE GLASS-STEAGALL immediately and give the major banks to option of reform or loss of FDIC insurance. Then, if they wish to gamble – tax dollars don't provide corporate welfare. If that sounds like class warfare, it is. The rich have won the class war handily in the last 30 years.
President Obama inherited a financial mess and a Congress unwilling to enact effective reform since they are wholly owned subsidiaries of "big business." We now have a one party system with two names. The oligarchs in Washington are well paid to do nothing. Toss them all out. But, don't elect Mitt Romney, a Wall Street toadie who puts on "magic underwear" each morning.
I don't find it is an Obama problem. It is a Wall Street problem. I am a shareholder of JP Morgan--small, but still a stockholder of this company. I hope everyone paid attention to their proxies and the proposals and voted accordingly. After Mr. Dimon blew his mouth off about how the government "made" him take the money and then him and his posse does this? I was waiting for the great big thud. This is my last bank in my portfolio. The last one went under July 2011–not because of us small dimers but because of their "friends" in high places-commerical, not residentual. Too big for their bitches, too big of egos, too big of heads on small shoulders because if the shoulders weren't small they would be able to carry the grief they have caused. Mr. Dimon put it right. He stated he was a 1/2 Democrat. Democrats have been mean, "unfavorable", to business!! Really!!! The Rubberuplican have been favorable by holding up every piece of legislation that was written on reform. Their friend Phil Gramm (sp) wrote the bill. What was it he said on the video after it was passed, "This is a great day for the American people!!" It took Wall Street approximately 8 years to skin us–EVERYONE who has a 401K, pension, portfolio, young, old. No, the Rubber party, the no party has the problem. Mr. McConnell said their number one priority would be to make Obama a one term president. That is all they could work on. There ya go. That was the start of something big. I am ready to lose my dime again on the hedge I took on Jamie Dimon. Like my broker told me, "Buy beware!", when I lose, but when I win he takes the credit. I am done!! Well, done!!
No need for new legislation. Just re-enact Glass-Stegall Act of 1933 and revive the separation between commercial banking and the securities buisness that was foolishly repealed by the Congress through Gramm-Leach-Bliley Act HR1489. Passed in 1999 with only 2 or 3 votes against.
Wasn't JPM one of the big banks that wanted to interpret and follow the "reform" rules as narrowly as possible?
Ask the Republicans who want to continue looting our country. .
The problem is, even two-plus years after the passage of Frank-Dodd the regulators can't even agree on the definition of swap. Plus this appears to have been an economic hedge designed to reduce previous protection JP Morgan bought against declining credit quality in Europe (i.e. they now think corporations in Europe are not as bad off as they were a year ago when the first credit insurance was purchased) so it might not even be covered under the regulation because the activity in question was in essense plain vanilla risk management. So for all the noise in its passage and thousands of pages of language, D-F would either have been ineffective or irrelevant. Don't count on the Wise Men in Washington to save you.
This is a world economy so it's everyone's problem.
Obama has made his choices over the years and now he must face the music. He is like a quarterback on a losing team. All the blame starts there and works it's way down the roster....the VP, Congress etc. He did deliver on one promise, change, boy did he ever!
We the voters can "change" Washington when we have our turn at the polls. Let's make the right choices this time and bring jobs back into this country. Entitlement is for those unwilling to work for the rewards. Get some one in there that understands business and what a hard day's work can get you.
Clinton said it best when he called Obama an "Amateur". He's a light weight that's in deep deep water. He just doesn't have the right stuff.
"It means Griff is going to enter his first singing contest for over 65's. Chartwell here I go!"
Wall Street is a reminder to the nation of GOP greed and their desire to turn Wall Street and the banking industry loose to make profits at any cost. Making money at any cost is not the answer, it doesn't create jobs and certainly shows that the jewel of GOP ideology "trickle down economics" doesn't work.
Obama works for Wall Street. His team of financial experts should be in jail. The financial reform law was a joke. It's got so many loopholes for the big banks it's completely useless.
Not addressing the problem fueled the Tea Party and a big shift to the Right globally, not just in the U.S. When folks see their taxpayer dollars given to rich bankers, they get really mad. Only breaking up the biggest banks and bringing back Glass-Steagall separation of depository and investment banking will be enough to bring things back to center.
The problem is Wall Street. Today they fired an out-of-control bank manager, and then they say no regulation? They are kidding, right?
The problem is as simple as the solution- reinstate Glass Steagall
Jack Cafferty sounds off hourly on the Situation Room on the stories crossing his radar. Now, you can check in with Jack online to see what he's thinking and weigh in with your own comments online and on TV.
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