U.S. Senate candidate Elizabeth Warren believes the risky trade that cost JPMorgan Chase (JPM) as much as $5.8 billion justifies the raising of a new Glass-Steagall Act.
A reporter for Masslive.com and The Republican quotes Warren as saying, "Banking should be boring. JPMorgan's disclosure today of massive losses shows they are still riding the roller coaster – and they need months to figure out how much risk they have taken."
The depression-era Glass-Steagall Act was enacted to ensure commercial banks that take public deposits do not gamble in risky trades and investments.
Warren says JPMorgan's recent trade debacle is a battle cry. Warren, the architect of the Consumer Financial Protection Bureau, wants to pass a modern Glass-Steagall Act that will separate investment banks from ordinary depositories.
Click here to read more.