Candidate says $2B trading loss for bailed-out bank highlights need for reform
AUGUSTA — State Sen. Cynthia Dill, the leading progressive in the race for U.S. Senate, said recent disclosure of huge trading losses at J.P. Morgan Chase underscore the need for reform measures such as the “Volcker Rule.”
The Volcker Rule prohibits a bank, or an institution that owns a bank, from engaging in proprietary trading that is not at the behest of its clients, and from owning or investing in a hedge fund or private equity fund. It also limits the liabilities the largest banks can hold.
The rule, part of the Dodd-Frank financial reform law, goes into effect July 21. But Republicans have attempted to sidetrack it, lately by underfunding its enforcement.
“As U.S. senator, I will support reasonable controls on Wall Street to help prevent another crisis like 2008,” Dill said. “I support the Volcker Rule and will vote against exemptions to it sought by the banking industry, work to break the parliamentary maneuvers that have thus far scuttled it, and coordinate with the new Consumer Financial Protection Bureau to implement it,” Dill said.
She said as U.S. senator she would also move toward restoring the Glass-Steagall Act, a law on the books for decades preventing deposit banks from owning riskier investments that was repealed to create Citigroup in 1999.