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THE NEW YORK TIMES
Senate Majority Leader Harry Reid, D-Nev., speaks at a news conference Nov. 15, 2011, on Capitol Hill in Washington.
By Karoun Demirjian (contact) 
Wednesday, May 16, 2012 | 2 a.m.
Sun coverage
Sen. Harry Reid has harsh words when it comes to how JPMorgan — once the administration’s favorite poster child of a bank that wasn’t big and bad — lost $2 billion in a trading mistake meant to offset its own risk.
On Tuesday, Reid accused JPMorgan and its CEO, Jamie Dimon, of making an irresponsible gamble. He likened the $2 billion trading debacle (which has since precipitated the loss of another $20 billion in the value of its shares) to a betting streak gone bad.
“I would suggest that JPMorgan take their business to Las Vegas because it’s just a gamble,” Reid said. “Clearly they were betting like you would do at a craps table in Las Vegas, and they bet the wrong way.”
But so far, he’s stopped short of joining the chorus of calls from Democrats who think Congress should respond to the banking blunder by revisiting, and strengthening, banking regulations.
In 2010, the Dodd-Frank bill trotted out some of the most stringent regulations the banking industry had seen in decades. In 2012, it remains one of the most hotly debated Obama achievements on the campaign trail.
Part of that is rooted in politics. Most Republicans argue that the regulations in Dodd-Frank have so complicated the practice of banking that the industry will likely be hamstrung into failure as a result. Democrats think the changes are necessary to keep profit-minded giants accountable.
But part of it is also lodged in practice.
Most of the provisions of the Dodd-Frank bill haven’t been finalized or taken effect. That includes the all-important Volcker rule, which would restrict big commercial banks from engaging in the sort of hedge bets that led to JPMorgan’s $2 billion loss. The Volcker rule doesn’t go into effect until July, and even after that, companies have a two-year grace period to comply with the new order.
Reid directed an accusing tone at the rule-writers when asked if Congress had a role to play in responding to the JPMorgan crisis beyond holding hearings, which will take place in the Senate this week.
“We shouldn’t have to wait until July,” Reid said, complaining that the Federal Reserve Board was taking too long to finalize Dodd-Frank rules. “It’s been a year and a half. They should be working more overtime.”
Reid does have some congressional influence to exert as far as the Fed is concerned. He’s expected to push the Senate to confirm two pending nominations to the Federal Reserve Board, citing the importance of having “a fully functioning Fed” to keep the Dodd-Frank regulation drafting process moving.
In the meantime, however, Reid appears content to aim much of his rhetoric at Wall Street.
“The problem is the way Wall Street’s been working is that heads, they win; tails, we lose,” Reid said. “This is a bad deal.”
I would bet that Seniletor Reid has "lost" more than $2 billion of our tax dollars on "needed" programs over the years.
So let me get this straight: the SAME bankers and Wall Street folks continue to do "business as usual," with bailouts, no one in jail, and have yet another opportunity to cause another economic crisis. It seems to be that those leaders the American Citizens have put in charge are NOT doing their jobs.
One solution to this mess, is to hold PERSONALLY RESPONSIBLE each and every person who is technically violating these new laws, with the damages taken OUT of their salaries and personal assets. Then there might be a REAL change in how they do business with other people's money!!!!
Nevada Senator Harry Reid nailed it, ""The problem is the way Wall Street's been working is that heads, they win; tails, we lose," Reid said. "This is a bad deal."" We the People, are absolutely done with the bad faith these financial tycoons are utilizing. It MUST stop!
Blessings and Peace,
Star
Harry Reid has spent way too much time in the desert sun! Let me get this straight Harry and President Obama: You will send the FBI to investigate me after I lose money and if I make too much money you will tax the living crap out of me!
NEVEDA wake up! The Dems have no idea what they are doing and Harry is there fearless leader- a leader that in 3 1/2 years running the senate couldn't even come up with a budget!
This guy would have a tough time just tying his shoes, he is out to lunch and we are all paying for it!
This reminds me of the current administration "betting" on Solyndra.
Newsflash for politicians and a few Sun readers.....it's not against any law for a private company to lose money.
JP Morgan lost $2 billion of its own money in a bad investment ("bet" to Senator Reid).
Obama administration loses $500 billion in a bad investment (that's a "bet" too, Senator) in Solyndra. BTW, that was taxpayer money, meaning, other people money. No wails, no howls, no investigation by our good Senator!
Why not??
Harry says we need an eight billion dollar train,five billion dollar solar panels from communist China and another four years of a continuing resolutions budget so government employees can keep their lavish life style. Tarp and the Wall Street bailout was the dumbest maneuver ever, by guess who?
On one hand people will bash companies for making too much money (Exxon) and then bash them for losing too much.
The difference is the crap we were told about the banks needing a bailout from the taxpayers (which hasn't all been paid back) and now one of the very banks that needed help is doing this?
Who's handing out the pitchforks cuz I'm gonna need one.
1,111 days and NO BUDGET. Come on this guy is trying to tell us they need to put more regulations on a company losing thier own money. Harry knows nothing about economics.
Hey Harry and Libs. Where did all the Solyndra money go?