Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Reveal Navigation

Surprise J.P. Morgan Loss of $2 Billion Could Help Volcker Rule Proponents Surprise J.P. Morgan Loss of $2 Billion Could Help Volcker Rule P... Surprise J.P. Morgan Loss of $2 Billion Could Help Volcker Rule Propon... Surprise J.P. Morgan Loss...

share
This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Economy / ECONOMY

Surprise J.P. Morgan Loss of $2 Billion Could Help Volcker Rule Proponents

photo of Niraj Chokshi
May 10, 2012

In a Thursday afternoon conference call, J.P. Morgan Chase Chief Executive James Dimon announced an estimated $2 billion in losses over six weeks, news that could have a significant impact on the fight over the forthcoming Volcker Rule, which limits how banks can invest deposited money, according to reports.

“These were egregious mistakes,” Dimon said on the call, The New York Times reported. “They were self-inflicted and this is not how we want to run a business.”

Dimon has overseen a rise in the "size and risk of its speculative bets" over the past five years, Bloomberg reported last month. He also acknowledged on Thursday that the news could help proponents of the Volcker Rule, saying it "plays right into the hands of a bunch of pundits out there. But that's life," according to a tweet from New York Times business reporter Kevin Roose.

 

The Volcker Rule is scheduled to be implemented this July, though Federal Reserve Chairman Ben Bernanke has said that regulators will likely need more time to get it in place. Banks complain that the rule would increase risk and be difficult to enforce.

Dimon described the operations that led to the loss as "poorly executed" and "poorly monitored," The Wall Street Journal reported. That newspaper also described the loss as "a black eye" for the nation's largest bank.

Get us in your feed.
 
Comments
comments powered by Disqus