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Romney Defends JP Morgan’s $3 Billion Trading Debacle After Collecting Millions From the Financial Industry

Pat Garofalo
Think Progress / News Report
Published: Friday 18 May 2012
“Overall, of course, Romney has shown little interest in diagnosing or addressing the causes of the 2008 financial crisis, and the role of the nation’s biggest banks in nearly sinking the global economy.”
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2012 presumptive Republican presidential nominee Mitt Romney this week defended JP Morgan Chase’s $3 billion trading debacle as just “the way America works.” He denied that the episode makes the case for stronger regulations to rein in banks’ risky trading.

Overall, of course, Romney has shown little interest in diagnosing or addressing the causes of the 2008 financial crisis, and the role of the nation’s biggest banks in nearly sinking the global economy. And the banks surely appreciate it, considering that employees of the biggest financial, as the Boston Globe noted today:

When the head of JPMorgan Chase met with shareholders to answer for a trading loss of more than $2 billion Tuesday, it was against an evolving political backdrop: Donors from big banks are betting on Mitt Romney to defeat President Obama and repeal new restraints on risky, large-scale investments.

The top five donor groups in Romney’s campaign are individuals and political action committees associated with large financial institutions, led by Wall Street giants Goldman Sachs and JPMorgan Chase, according to information compiled by the Center for Responsive Politics, a nonpartisan research group that tracks campaign donations.

The Globe actually got it a bit wrong: the top six donors to Romney come from the biggest banks— Goldman Sachs, JP Morgan Chase, Bank of America, Morgan Stanley, Credit Suisse, and Citigroup. And the finance/insurance/real estate industry is far and away the largest donor to Romney’s campaign, giving him $18 million. Of course, banks also throw money at the Democrats, but in this cycle, they’ve clearly favored the GOP.

Romney is surely not the only Republican lawmaker getting JP Morgan’s back, as House Financial Services Committee Spencer Bachus (R-Al) also defended the bank. Bachus, though, is also bankrolled.

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ABOUT Pat Garofalo

Pat Garofalo is Economic Policy Editor for at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

Obama is just as beholden to

Obama is just as beholden to these Wall Street folks, and is far from a progressive on regulating them. In 2008, people who worked at JP Morgan Chase, Goldman Sachs and Citibank were among his top 10 donors. Romney might be worse, but we can't give Obama a free pass. and of course, a lot of the deregulation that allowed 2008 crash occurred under Clinton.

Um.. excuse me Mr. Garofalo,

Um.. excuse me Mr. Garofalo, but what about Obama?!? All this article does is perpetuate the illusion of the left/right paradigm and and the falsehood that politics is as simple as Democrat = good, Republican = bad. All those facts in the article are correct about Mitt Romney, however the author fails to mention Obama's name anywhere and admit the fact that Obama did the SAME thing as Romney. He too came out and praised JP Morgan after this debacle. Moreover, Obama has gotten MORE donations from Wall street then Romney AND he has a "special client" private checking account with JP Morgan. C'mom Mr. Garofalo, wake up...start holding Democrats responsible for doing the same things Republicans are doing and stop spreading so much misinformation.

Here, here! We need to hold

Here, here! We need to hold the Democrats accountable, not just stand by them because they are theoretically the party on our side. I agree they are better - but Dodd-Frank is no Glass-Steagall.

Mitt Romney shamelessly

Mitt Romney shamelessly defends the indefensible Acts of J.P. Morgan and he likes to claim that Tax-Payers money was never at Risk.

If the money had only come from the Investment Banking part of J. P. Morgan that would be true, however; they transferred money from the Commercial Banking Business to the Investment Banking Business and put that money at risk. Money which is insured by the FDIC, which Candidate Mitt Romney should know is "We the People" or Tax-Payers.

But, Mitt Romney also likes to claim that Bain Investment existed to create Jobs and not just to make a Return on Investment for the Investors. It is my belief that Bain Investment was very good at making money for the Investors but a Failure at ceating jobs.

@Theodore Ziolkowski What's

@Theodore Ziolkowski

What's indefensible about losing your own companies money? This loss doesn't even push the bank into unprofitability, let alone bankruptcy. If the trading actually endangered the bank you'd have a point. You know like the banks that bought European government bonds. The bonds that government regulators put as the highest rating for purposes of capital adequacy. Tell you what, you leftists keep going on about every trivial thing the private banks do. Us libertarians will point out the massive flows of Federal Reserve money to European banks that are massively exposed to Greek, Italian, Portugese and Spanish debt. The latter dwarfs the former by an order of magnitude.

If mitt thought there was a

If mitt thought there was a interest group that wanted to hear him denounce the big banks and the promote the need for regulation, I'm sure he would be for it, (in the most ambiguous terms he could frame it in and with his fingers crossed behind his back). Tomorrow, maybe not so much. I've no doubt that the reality of a romney administration, (does anyone get a little urppy when they read that? I do.), would look like w. bush's without the restraint and humility.

Mittens can shamelessly

Mittens can shamelessly defend the indefensible.

As for his way with Wall Street thieves and presidential campaign contributions, it must be his magic Mormon underwear because Obama has refused to look back and criminally prosecute his "Savvy Businessmen" buddies keeping the angry mob (99%ers) with torches and pitchforks at bay and keeping the thieving bastards out of prison.
They owe Obama bigtime for their freedom, their ill-gotten gains, and the opportunity to enjoy both.

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