Even fully implemented financial reform would not have prevented JPMorgan Chase’s $2 billion-plus loss in hedge trading, Boehner said.
In an interview on ABC News’ “This Week” that aired today, Boehner also said those responsible for the losses should be held accountable.
“There’s no law against stupidity, no law against stupid trades,” Boehner said. “And as long as depositors’ money wasn’t at risk and as long as there’s no risk of a taxpayer bailout, they should be held accountable by the market and their shareholders. And they are.”
Boehner’s position differs greatly from that of President Obama, who dedicated his weekly address this weekend to encouraging Congress to help finalize provisions of the Dodd-Frank reform laws passed two years by Democrats.
Dodd-Frank, the president said, “discourages big banks and financial institutions from making risky bets with taxpayer-insured money.”
Among those provisions that have not been implemented is the Volcker Rule, which would isolate risky proprietary trading by banks from retail banking operations and federally-insured deposit accounts.
Boehner reiterated the GOP’s opposition to Dodd-Frank, but stopped short of affirming the intention of
presumptive Republican nominee Mitt Romney to repeal the reform.
“There are big problems with this law, and it needs — it needs some big changes,” Boehner said when asked if he was still for repealing Dodd-Frank.