|By Richard A. Serrano and Jim Puzzanghera, Los Angeles Times|
"We are aware of the matter and are looking into it," said a
The inquiry by the
"The Fed and the
The ability of
But the huge loss by the nation's largest bank also highlighted the need for tough implementation of the so-called Volcker Rule on proprietary trading and other rules that regulators are still finalizing.
"We are going to work very hard to ensure that these reforms are tough and effective, not just the Volcker Rule, but the broader compliment of reforms on capital and liquidity," Geithner said.
"The whole point was, even if you're smart, you can make mistakes, and since these banks are insured backed up by taxpayers, we don't want you taking risks where eventually we might end up having to bail you out again, because we've done that, been there, didn't like it," Obama said.
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