Reuters: Regulatory News: JPMorgan trading loss shows danger in bank size -Volcker

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

JPMorgan trading loss shows danger in bank size -Volcker Jun 7th 2012, 18:39 Thu Jun 7, 2012 2:39pm EDT NEW YORK, June 7 (Reuters) - Former Federal Reserve Chairman Paul Volcker said JPMorgan Chase's recent multibillion-dollar trading loss may show that the nation's largest banks are too big to manage. JPMorgan revealed last month that its London office had executed a failed hedging strategy that has so far produced at least $2 billion in trading losses. The news has rattled Wall Street and Washington and raised questions about whether banks are still taking too many risks following the 2007-2009 financial crisis. "Maybe this JPMorgan thing is an illustration that these(banks) are really too big to manage," Volcker said on Thursday at an American Bankers Association event at Columbia University in New York. "There are so many things going on at these banks." The Volcker rule, named for Volcker - who has advocated for banks to become less complex and interconnected - would ban banks from making speculative bets with their own funds if they enjoy federal guarantees. He said on Thursday that the failed trading strategy at JPMorgan's Chief Investment Office is "the antithesis of the kind of ethic and approach we want to take in banking."

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions