JPMorgan loss could lead to more support for Volcker Rule

Jeremy Hobson May 14, 2012

Jeremy Hobson: Now an update on that $2 billion loss at JPMorgan that was announced last week. The one that stemmed from what the bank called “egregious mistakes,” and what others called risky bets.

JPMorgan’s CEO Jamie Dimon was on NBC’s “Meet the Press” yesterday, and he faced questions from moderator David Gregory about whether regulations on banks need to be tougher.

David Gregory: Have you given regulators new ammunition?

Jamie Dimon: Yes absolutely. This is a very unfortunate and opportune time to have this kind of mistake.

Banks like JPMorgan have been fighting against something called the Volcker Rule, which would prohibit the kind of trading that led to the $2 billion loss at JPMorgan. The Wall Street Journal reports this morning that at least three executives at the bank are on their way out.

Dimon is not one of them.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.