Mathew Yglesias: JP Morgan Loses $2 Billion in Massive Failed Effort to Exploit Volcker Rule Loophole
JP Morgan Volcker Loophole: Meanwhile, fine wine flashback to April 4:
Dimon's biggest regulatory beef is with a requirement that will force JPMorgan and other large banks that are deemed "Systemically Important" to hold as much as a third more capital than the minimum other banks have to hold to protect themselves against bad loans and other losses. He called the rule "contrived," and said that it would make the banks less diversified, not more so. Dimon said he also had problems with the Volcker rule, which limits banks' ability to make risky trades, and with rules that govern derivatives, an area that JPMorgan is big in.
Indeed, if only JP Morgan were allowed to run a thinner capital buffer and riskier trades. Then we'd all feel safe.