If JPMorgan's losses were from a hedging strategy, they would not have been prevented by the Volcker rule, which specifically permits hedging. The problem is hedging is virtually indistinguishable from proprietary trading.
JPMorgan's flawed value at Risk modeling failed to catch the danger in its Chief Investment Office. But the metric's elevated readings now threaten the bank's ability to take risk elsewhere.
Until now, there was no expectation that anyone at Tuesday's shareholder meeting would complain about the enormous booty Jamie Dimon earns. The $2 billion trading loss changes everything.
The best way to stave off regulatory excess in the wake of a financial crisis is to stop causing crises in the first place. More restraint on financial institutions' part could help.
Lurking below the surface of the principal reduction debate is an ugly and messy public policy problem - namely what to do about the group of delinquent and underwater borrowers who were not truthful.
Bankers received an earful about pay from the public this year. But among the audience that matters most-their own shareholders-the feedback was overwhelmingly positive.
Megabank CEOs want the Fed to disclose more about its stress test models. They can show good faith by supporting the international effort to make global counterparty risk transparent.
