JPMorgan’s shocking $2 billion blunder gives U.S. Senate candidate Elizabeth Warren a chance to get back to her anti-Wall Street message and quash questions over her alleged Cherokee background, experts say.
“This has been Elizabeth Warren’s mantra and she should take advantage of it — the risky exploits of big bankers coming at someone else’s expense,” Suffolk University pollster David Paleologos said.
JPMorgan shocked Wall Street late Thursday by disclosing that it had lost $2 billion on high-risk investments critics say big banks shouldn’t put money into.
The losses embarrassed CEO Jamie Dimon, who’s long railed against the 2010 Dodd-Frank Wall Street reform law championed by U.S. Rep. Barney Frank (D-Newton).
Dodd-Frank aims to ban big firms from taking on too much risk, although the law hasn’t fully taken effect and it’s not clear it would have prohibited JPMorgan’s trades.
Paleologos said the case gives Warren — a Democrat who oversaw Wall Street’s bailout for Congress and has made fighting financiers an election centerpiece — a chance to reboot her campaign.
A Harvard University professor who aims to unseat incumbent GOP U.S. Sen. Scott Brown, Warren has struggled since the Herald broke a story two weeks ago about her reputed Native American background.
Questions have arisen as to whether Warren used supposed Cherokee ancestry to take advantage of universities’ minority-hiring programs.
Paleologos said JPMorgan’s losses give Warren an opening to push the scandal to the back burner.
“You’ve got an issue working against Elizabeth Warren followed by an issue that’s working for (her),” he said. “Both may cancel each other out.”
So let’s just forget she’s a total fraud and concoct an escape hatch for her.
I don’t think so.