Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, released the following statement in response to actions by U.S. and UK regulators to levy a nearly $1 billion fine against JP Morgan.
“Today’s announcement of fines levied against JP Morgan validates Congress’ decision to provide our regulators with broad authority to regulate derivatives trading whenever it affects the US economy, including overseas. These actions, as well as those expected by the CFTC, send a powerful message to Wall Street that when it engages in irresponsible behavior, it will be held accountable.
As Congress and our regulators have undertaken the important work of implementing the Dodd-Frank Wall Street Reform Act, our largest institutions have actively lobbied against derivatives trading reform. Indeed, they have been successful in convincing some that such regulations would undermine their ability to compete with foreign institutions.
JP Morgan’s admission of guilt should be instructive to our nation’s legislators, regulators and financial institutions. Perhaps now, those of us fighting to end such reckless behavior will no longer have to struggle against the significant resources these institutions have devoted to continuing the dangerous practices that caused the near depression, from which our country is just now beginning to emerge.”