U.S. Rep. Spencer Bachus has been known to be a friend to Wall Street. In 2010, Bachus, a Republican from Vestavia Hills, said that he believes “that Washington and regulators are there to serve the banks,” and said that regulators shouldn’t “micromanage” banks. That was good news for Wall Street, especially since those words came from the man who was about to be the chair of House financial services committee.
Now, Bachus has stepped up to the plate for JPMorgan, a company that has given quite freely to Bachus’ campaigns and that holds many of the cards in Jefferson County’s ongoing bankruptcy. According to Bank Investment Consultant, Bachus is fighting off calls to grant regulators more power in the wake of a $3 billion derivatives trading loss by JPMorgan.
“Even with this loss, I believe they’re one of the most profitable financial institutions in the country, and unless the facts are diametrically different from what we’ve heard, there is no risk from this loss to depositors or to taxpayers,” Bachus said during a House hearing. “They remain a very profitable, viable institution.”
Bachus, an Alabama Republican, noted that JPMorgan Chase’s net worth is $189 billion, and its pre-tax profits last year were $25 billion.
“So a $2 billion loss would represent one month of earnings,” he said.
Bachus also implied that Democrats are pushing for laws that would try to stop banks from taking risks or losing money—laws that Bachus said would not work.
Read more at Bank Investment Consultant.