JPMorgan Chase Losses: No Reason for More Regulation
JPMorgan Chase’s announcement that it has lost $2 billion in a failed hedge strategy sent shock waves through the financial world yesterday. And in Washington, the reaction has had a political tone, with calls to accelerate adoption of the “Volcker Rule” limiting investments by banks. But policymakers should take a breath before taking out the regulatory pen. While the case clearly reflects a management failure, it is not a systemic problem that requires or would be fixed by additional regulation. As JPMorgan Chase’s Chairman Jaime Dimon said, “Just because we’re … More
