Editorial Board

For Volcker Rule, JPMorgan’s $2 Billion Loss Says It All

May 11, 2012 at 1:02 PM EDT

The Editorial Board publishes the views of the editors across a range of national and global affairs.

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It’s never polite to say I told you so, but JPMorgan Chase & Co.’s $2 billion trading loss has proponents of a tougher proprietary trading ban saying . . . well, you know what.

JPMorgan’s is a shocker. The bank said the losses resulted from errors, sloppiness and bad judgment, which top bank executives didn’t know about or understand until it was too late. On Wall Street and around the globe, JPMorgan was a standard-setter for risk management. If regulators can’t trust JPMorgan to get it right, whom can they trust?

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