Bloomberg says JPMorgan’s loss is a ‘hiccup,’ and there’s nothing wrong with working in private equity
Mayor Michael Bloomberg, who famously paid a solidarity visit to Goldman Sachs after a longtime staffer wrote a damning resignation letter in the New York Times, once again came to Wall Street's defense at a press conference today about the city's growing tech sector.
Asked by a reporter whether JPMorgan's $2 billion trading loss constituted an argument in favor of the Volcker Rule, which would prevent federally insured banks from speculating with firm money, Bloomberg referred to the $2 billion trading loss as a "hiccup."
"I will say Jamie Dimon, I think and I think you'd get general consensus, is one of the smartest people in the financial industry," said the mayor.
He also said, "He and I both support smarter, better regulation, but I think it's true you can't eliminate risk. There's no lending without risk and there's no economy without lending ... Jamie Dimon is the kind of guy who will stand up, take responsibility, no nonsense, this is not a guy who's going to try to blame anybody else."
Separately, a reporter asked him his thoughts on a recent Obama campaign commercial that depicts Mitt Romney's time at Bain Capital in a negative light.
"Their business is to take businesses that are failing, change the management, change the number of employees, different employees, better employees, worse employees, whatever, and get those companies back out there being productive," he said, adding, "There's nothing wrong with working for a private equity firm."