Obama: JPMorgan loss proves need for bank rules

Obama: JPMorgan's $2 billion loss demonstrates need for tough Wall Street rules

Associated Press
Obama: JPMorgan loss proves need for bank rules
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President Barack Obama, center, appears on ABC's television show "The View" in New York, Monday, May 14, 2012. From left are, Whoopi Goldberg, Barbara Walters, the president, Joy Behar, Sherri Shepherd and Elisabeth Hasselbeck. (AP Photo/Pablo Martinez Monsivais)

WASHINGTON (AP) -- President Barack Obama says JPMorgan Chase's $2 billion loss in high-risk trading demonstrates the need for the Wall Street rules that Congress passed two years ago. Many of the rules are still being written and have not taken effect.

Obama says the bank's loss also illustrates the sharp differences between his view of government and that of Republican challenger Mitt Romney, who has called for less stringent regulations than those contained in the new law.

Obama made his remarks during an appearance on ABC's "The View," a daytime talk show. The interview will air Tuesday, but a portion appeared on ABC's "World News With Diane Sawyer."

Obama argued that while JPMorgan could withstand the loss, a smaller bank could have been so damaged that it would have required federal assistance.

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