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Entries in JPMorgan Chase (3)

Tuesday
May152012

JPMorgan’s $2 Billion Loss: The Political Ramifications

Emmanuel Dunand/AFP/Alex Wong/Getty Images(WASHINGTON) -- Republicans and Democrats both stand to suffer from the ripple effects of the massive losses announced by JPMorgan Chase last week.

JPMorgan Chase CEO Jamie Dimon described himself as “barely a Democrat” during an interview on NBC’s Meet the Press.  He has been a major donor to the Democratic party over the course of his career.  But while he may lean to the left, presumptive GOP nominee Mitt Romney has been the largest recipient of funds from the financial service firm this cycle by far.

According to The Center for Responsive Politics, Romney has received more than $373,650 in donations from individuals employed by the company, more than any other candidate for political office.  Obama has received $76,675 from donors employed by JPMorgan Chase.

Obama is the second largest Democratic recipient from those affiliated with the firm.  Mark Warner, the freshmen senator from Virginia, has so far received a total of $79,150 in donations, making him the largest Democratic recipient, second largest recipient overall this cycle.

Dimon and his wife have given $730,000 in political contributions since 1992.  The majority of that money has gone to Democratic candidates, including Hillary Clinton and Al Gore, though Dimon’s giving history is bipartisan.

JPMorgan Chase, the nation’s largest bank, first reported a $2 billion trading loss last Thursday, adding new fuel to the already fiery debate surrounding financial regulation and oversight, and prompted an SEC investigation into the firm’s practices.

Transparency and regulation within the financial sector are two big topics for both parties in this election cycle, and the firm’s massive loss could have potentially damaging ripple effects to both Obama and Romney.

For Obama, the news of the company’s loss has the potential to recall negative memories from 2008, when enormous losses in the financial sector resulted in massive job loss and dealt an enormous blow to the nation’s economy.  Obama may not have been the president who passed the controversial Troubled Assets Relief Program (TARP) but he voted for it in the senate and he came into office promising to bring big changes -- among them accountability and transparency -- to Wall Street and the financial sector.

For Romney, the company’s losses paint an obvious opportunity for attacks from the other side on the presumptive nominee’s position regarding Wall Street reform.  Romney has argued for the repeal of the Dodd-Frank financial reform bill, signed by Obama in 2010.  It includes a version of the not-yet-implemented provision known as the Volcker Rule, which seeks to place limits on certain types of speculative investments.

Copyright 2012 ABC News Radio

Monday
May142012

JPMorgan’s $2 Billion Loss: The Political Ramifications

Scott Eells/Bloomberg via Getty Images(NEW YORK) -- Republicans and Democrats both stand to suffer from the ripple effects of the massive losses announced by JPMorgan Chase last week.

JPMorgan Chase CEO Jamie Dimon described himself as “barely a Democrat” during an interview on NBC’s Meet the Press. Dimon has been a major donor to the Democratic party over the course of his career. Dimon may lean to the left, but presumptive GOP nominee Mitt Romney has been the largest recipient of funds from the financial service firm this cycle by far.

According to The Center for Responsive Politics, Mitt Romney has received more than $373,650 in donations from individuals employed by the company, more than any other candidate for political office. Obama has received $76,675 from donors employed by JPMorgan Chase.

Obama is the second-biggest Democratic recipient from those affiliated with the firm. Mark Warner, the freshmen senator from Virginia, has so far received a total of $79,150 in donations, making him the largest Democratic recipient and second-biggest recipient overall this cycle.

Dimon and his wife have given $730,000 in political contributions since 1992. The majority of that money has gone to Democratic candidates, including Hillary Clinton and Al Gore, though Dimon’s giving history is bipartisan.

JPMorgan Chase, the nation’s largest bank, first reported a $2 billion loss last Thursday, adding new fuel to the already-fiery debate surrounding financial regulation and oversight, and prompting an SEC investigation into the firm’s practices.

Transparency and regulation within the financial sector are two big topics for both parties in this election cycle, and the firm’s massive loss could have potentially damaging ripple effects to both Obama and Romney.

For Obama, the news of the company’s loss has the potential to recall negative memories from 2008, when enormous losses in the financial sector resulted in massive job loss and dealt an enormous blow to the nation’s economy. Obama may not have been the president who passed the controversial Troubled Assets Relief Program (TARP) but he voted for it in the Senate and he came into office promising to bring big changes -- among them accountability and transparency -- to Wall Street and the financial sector. With JPMorgan Chase’s loss, though, those changes are underscored.

For Romney, the company’s losses paint an obvious opportunity for attacks from the other side on the presumptive nominee’s position regarding Wall Street reform. Romney has argued for the repeal of the Dodd-Frank financial reform bill, signed by Obama in 2010. It includes a version of the not-yet-implemented provision known as the Volcker rule, which seeks to place limits on certain types of speculative investments.

There is some debate as to whether or not the Volcker rule could have actually prevented JPMorgan’s loss.

The Obama campaign has already begun to highlight Romney’s opposition to the Wall Street reform law.

“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,” said Obama campaign spokesman Ben LaBolt in an email to ABC News.

Romney’s campaign said that Romney has called for and continues to support regulation, specifically noting his support for oversight and transparency with respective to the derivatives market.

Copyright 2012 ABC News Radio

Friday
May112012

In NC, Romney Tries to Refocus Campaign on Economy

Darren McCollester/Getty Images(CHARLOTTE, N.C.) — In a week when the news cycle was dominated by the president’s remarks on gay marriage and what Mitt Romney did in high school, the GOP candidate tried in North Carolina Friday to turn his focus back to the economy.

“Right now we’re finding people across the country that are experiencing some hard times and I think one of the reasons is that we have a president who has installed some of the old liberal policies from the past and they didn’t work then and sure as heck are not working now and they won’t work in the future,” said Romney, speaking on the floor of Charlotte Pipe and Foundry Company, a manufacturer that has not laid off a worker for more than 30 years, according to the CEO.

“You know there used to be like 6,000 places like this across the country, foundries, the last decade or so that’s been cut by about two-thirds,” Romney said. “You know you need to have places like that if you’re going to be able to build jet aircraft and tanks and build the kind of products we need. But America’s faced a tough competition from overseas and we’ve had economic policies that in some cases haven’t worked for the American people. But I want to salute this company on its commitment to high wages, to no lay-offs and to great success.”

Earlier this week, President Obama announced that he now supports same-sex marriage.  Romney said again that he does not, a distinction between the two politicians that the former governor has yet to highlight on the stump. Some pollsters have suggested that the president’s announcement could actually give Romney a boost in swing states such a Virginia and North Carolina, where older, rural voters are opposed to same-sex marriage.

North Carolina voters on Tuesday passed a constitutional amendment banning gay marriage and same-sex unions.

Romney’s economy-focused event is not new for the candidate, but also comes the day before he is set to give the commencement address at Liberty University, the evangelical Christian school where several politicians have visited as a way to connect with the conservative core of their party.

Also not mentioned during the event Friday was any reference to his behavior in high school, which was brought to the forefront in a Washington Post article that detailed alleged bullying by the candidate that Romney himself has since apologized for, explaining that he does not remember the incidents noted in the piece.

Romney passed on a chance to comment on JP Morgan Chase, which announced a $2 billion trading loss in the past six weeks. Instead, campaign spokesman Rick Gorka offered a statement on behalf of the candidate: “JP Morgan’s reported $2 billion trading loss demonstrates the importance of oversight and transparency in the derivatives market, something Gov. Romney has called for in the past. JP Morgan’s investors, not taxpayers, will incur any losses from this hedging trade gone bad. As president, Gov. Romney will push for common-sense regulation that gives regulators tools to do their jobs, and that gives investors more clarity.”

Copyright 2012 ABC News Radio







ABC News Radio