The Senate Banking Committee yesterday delved into the nuances of JPMorgan’s trading loss, quizzing the bank’s primary regulators about how the blunder would affect the outcome of Wall Street regulation, the New York Times' DealBook blog reported yesterday. While the watchdogs were largely reticent in their views, saying that it was too soon to tell, some acknowledged that the losses would weigh on their deliberations over the Volcker Rule. "I would think our experience here with JPMorgan Chase would inform our views in the final rule-making," Comptroller of the Currency Thomas J. Curry told lawmakers. Neal S. Wolin, deputy secretary of the Treasury Department, called the JPMorgan incident "an important input" in creating a "strong Volcker Rule." Efforts to draft a final version of the new regulation, named after Paul A. Volcker, the former chairman of the Federal Reserve, gained a fresh push after JPMorgan disclosed last month that it lost at least $2 billion on dubious derivatives trading. The rule would ban banks from trading with their own money, a practice known as proprietary trading.
Click here to read the prepared testimony from yesterday's hearing.
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