Rep. Barney Frank: I Hope Final Volcker Rule Would Prevent JPMorgan’s Actions
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(NEW YORK) — Rep. Barney Frank, D-Mass., said this morning on “This Week” that he hopes the still-forming Volcker Rule would prevent the type of behavior that JP Morgan Chase engaged in that led to a $2 billion trading loss announced last week.
“I hope that the final rule will prevent this,” said Frank, an author of the Dodd-Frank financial reform bill. “The Volcker Rule is still being formulated.”
The Volcker Rule, as envisioned, would place limits on certain speculative proprietary trading.
Frank’s comments come days after the head of JPMorgan Chase, Jamie Dimon, disclosed that the nation’s largest bank had lost $2 billion in derivatives trading in recent weeks, stunning Wall Street.
Dimon suggested after the loss was disclosed that the actions of his company did not violate the Volcker Rule, which is part of the larger Dodd-Frank financial reform bill and yet to be put fully into place.
“This trading may not violate the Volcker Rule but it violates the Dimon principle,” said Dimon.
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