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Lawmakers argue that Dodd-Frank should be central at hearings, not JPMorgan

Shelley Moore Capito

As regulators plan to move forward with scheduled Dodd-Frank hearings, JPMorgan Chase & Co.’s $2 billion trading loss may take center stage during the hearings.

“There is no doubt that this week’s news of JPMorgan’s trading losses has raised significant questions about the supervision of risk,” Shelley Moore Capito, the chairwoman of the House Subcommittee on Financial Institutions and Consumer Credit, said, according to Bloomberg.

The bank’s recent massive losses have raised questions as to whether the trades that led to the loss would be prohibited under the controversial Volcker Rule, a provision of Dodd-Frank that prohibits banks from engaging in proprietary trades.

Some lawmakers argue, however, that Dodd-Frank should be the center of the hearings.

“While the news of JPMorgan’s trading loss is unfortunate, the bipartisan legislation the committee was scheduled to consider is unrelated to the cause of the trading loss,” Rep. Frank Lucas (R-Okla.) said, according to NOLA.com, adding that the Senate Banking Committee should “gather all relevant information before we proceed to ensure there are no unintended consequences of the legislation that would encourage recklessness in our financial institutions.”

Sen. David Vitter (R-La.), a Dodd-Frank opponent, echoed those sentiments and agreed that more hearings should be held first.

“I think it’ll be important to bring the heads of JPMorgan before the Senate Banking Committee to determine what went wrong, and if this furthers our need to push back against the ‘too big to fail’ culture of Washington and Dodd-Frank,” Vitter said, NOLA.com reports.

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