Has tighter banking regulations failed on Wall Street?

POSTED: Monday, May 14, 2012 - 5:15pm

UPDATED: Monday, May 14, 2012 - 5:19pm

On Capitol Hill, recent events have jarred some lawmakers into what sounds like bipartisanship, looking at ways to do what they thought they already did: banning banks insured by taxpayers from taking too much risk.

With JP Morgan-Chase stock still dropping after bad trading bets that could cost the bank $3 billion dollars or more, President Obama, at a graduation just uptown from Wall Street, took credit for tighter banking regulation.

"We know that we're better off when there are rules that stop big banks from making bad bets with other people’s money," stated Obama.

But Mitt Romney's been saying the Obama crackdown has not controlled big banks

"They've gotten bigger, and small community banks are the ones that have been most hurt," said Romney.

JP Morgan today forced the retirement of Investment Chief Ina Drew. CEO Jamie Dimon was contrite Sunday on Meet The Press.

"In hindsight, we took far too much risk," said Dimon.

Some Republicans are asking if banks insured by taxpayers ought to bet billions.

All eyes are on Wall Street's gamblers, four years after the crash. Adding to the feeling of déjà vu - the Senate will hold hearings on JP Morgan yo see if big banks are skirting the new rules. 

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