JPMorgan Debacle Ammo for Tighter Banking Rules

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The $2 billion trading loss at JPMorgan Chase could lead to stronger regulations of Wall Street banks.

The Obama administration imposed strict new regulations on banks after the financial collapse in 2008. As the banks began to recover, top executives started pushing for Washington to ease up on the regulations.

Now that fight is in jeopardy as JPMorgan's mistake gives more ammunition to those who want to tighten regulations.

"The argument that financial institutions do not need new rules to help them avoid the irresponsible actions that led to the crisis of 2008 is at least $2 billion harder to make today," Rep. Barney Frank, D-Mass, said.

JPMorgan Chase CEO Jamie Dimon is bracing for a meeting with shareholders Tuesday, five days after disclosing the trading loss.

The shareholders will vote on whether to separate the positions of CEO and chairman. Currently, both are held by Dimon. They will also vote on his $23 million pay package from 2011.

Meanwhile, Dimon has taken full responsibility for the debacle.

"We made a terrible, egregious mistake," Dimon told NBC's "Meet the Press." "There's almost no excuse for it."

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