Garrett Delivers Opening Statement at Hearing to Examine JPMorgan Trading Loss
WASHINGTON, DC – Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, delivered the following opening statement today at a hearing to examine the $2 billion trading loss recently disclosed by JPMorgan Chase & Co. and the implications for risk management at large financial institutions and the regulation of these institutions:
“Thank you, Mr. Chairman, for holding this hearing today.
“The recent trading loss at JP Morgan is regrettable and our banking regulators in charge of supervising the institution should examine exactly what happened. However, I am a little surprised by all of the hemming and hawing by my colleagues on the other side of aisle over a private business losing private money when the federal government continues to lose billions of taxpayer dollars every day.
“While there has been no shortage of outrage from my good friends on this private trading loss, it makes me wonder: Where is the outrage for the billions of taxpayer dollars going to Fannie and Freddie every quarter?
“Where is the outrage over the half a billion dollar taxpayer loss to the President’s green energy public equity venture with Solyndra?
“Where was the outrage when Bear Stearns was bailed out with billions of taxpayer dollars and I and my Republican colleagues sent a letter to the former Chairman asking him to hold a hearing – which he never did?
“While a $2 billion private loss is certainly significant, in a capitalistic economy, businesses sometimes do lose money. Unfortunately, my colleagues across the aisle continue to demonize any loss in the private market for political gain – while trying to hide any losses sustained by the taxpayer through crony-capitalism under the rug.”