The Eagle Times - The Wall Street Ilk

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By Unknown

Almost a month ago -- before the news broke that JPMorgan had lost $2 billion by trading in risky investments -- the Eagle Times observed in an editorial:

"It's trendy in Republican circles to say that what this country needs is less government regulation. While that is undoubtedly true in some instances, it is also indisputably true that we need smarter regulation.

That congress shelled out money to bail out Wall Street corporations but still hasn't addressed credit default swaps and other derivatives -- nearly four years later -- is the height of irresponsibility and, yes, stupidity.

Because until and unless Congress takes action to address the causes of the 2008 collapse, it could easily happen again and, we would bet, it's just a matter of time before it does."

We're just a little daily newspaper in a small New England town and we don't pretend to have any special insight into the workings of JPMorgan, Goldman Sachs or others of their Wall Street ilk. But we're pretty sure that, human nature and greed being what they are, those robber barons will continue to do what they think they can get away with and make money at.

So it warmed our bitter old hearts to learn that Sen. Jeanne Shaheen, D-N.H., has taken up the cause and yesterday called on Federal Reserve Board Chairman Ben Bernanke and other regulators to back stronger prohibitions against the kind of high-risk trading that led to the $2 billion loss:

"I urge you to eliminate any loopholes in the Volcker Rule that would allow large financial institutions to take massive bets in the derivatives markets that put taxpayers and investors at risk," Shaheen wrote in a letter to regulators. "I am fully aware of the aggressive efforts undertaken by large banks, including JPMorgan Chase, to lobby for these kinds of loopholes. However, the recent losses at JPMorgan Chase show that large banks will take advantage of any regulatory gaps when possible."

Like we said...

Among the institutions that stand to lose from banks that play and lose at this kind of roulette, Shaheen noted, is the New Hampshire Retirement System, where teachers, cops, firefighters and other public employees have their pensions invested.

We're glad Shaheen is on board with this, and we would suggest that it's also a watershed topic for the Granite State's other U.S. Senator as well. This is an issue that will provide voters with a pretty clear indication of whether Sen. Kelly Ayotte, a Republican, has a mind of her own in the classic New Hampshire tradition, or whether she resides securely in the pocket of the mega-corporations that make up the traditional Republican base.

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