Thanks to disastrous trades made by “the London Whale,” JPMorgan lost more than $2-billion (U.S.) and, for a brief, shining moment, CEO Jamie Dimon lost his customary brash arrogance. In a performance worthy of a shamed Japanese executive, he apologized profusely.
Mr. Dimon’s theatrics were, of course, designed to ward off regulations – known as the Volcker Rule – that would ban banks from making speculative trades using funds plucked from insured depositors’ accounts. A ban on proprietary trading, as it is called, would ensure that the taxpayer would not be left on the hook for trades gone so wrong that they would wreck the bank.
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