JPMorgan Chase’s announcement that it has lost $2 billion in a failed hedge strategy sent shock waves through the financial world yesterday. And in Washington, the reaction has had a political tone, with calls to accelerate adoption of the “Volcker Rule” limiting investments by banks. But policymakers should take a breath before taking out the regulatory pen. While the case clearly reflects a management failure, it is not a systemic problem that requires or would be fixed by additional regulation. As JPMorgan Chase’s Chairman Jaime Dimon said, “Just because we’re stupid doesn’t mean everybody else was.”

Continue reading on blog.heritage.org

GET MORE STORIES LIKE THIS

IN YOUR INBOX!

Sign up for our daily email and get the stories everyone is talking about.

Email
Previous post

U.S. House Considering East Coast Missile Defense

Next post

U.S. Remains Vulnerable to an EMP