BOSTON -- Consumer advocate Elizabeth Warren today issued the following statement after the Justice Department announced it has initiated an inquiry into the recent $2 billion trading losses at JP Morgan:
"Public confidence has been shaken once again. The Justice Department is right to investigate recent losses at JP Morgan to learn if any laws were broken. In addition, JPMorgan should conduct an internal investigation to find out what role different executives played in the bank's $2 billion gamble.
JP Morgan has the ability to send a positive signal to the markets and consumers that "sloppy" decisions will not be rewarded with multi-million dollar compensation packages. The bank has the legal right to take back a portion of the compensation paid to its executives, and it should affirm to the public that it is willing to do so, if the results of an internal investigation warrant such action.
The $2 billion in losses that surfaced last week raise concerns about more than a single person or a single firm. This is about a system in which Wall Street banks refuse to change their risky practices and continue to reward themselves when they fail. It’s long past time for real accountability for Wall Street."