JP MORGAN INADEQUATE RISK MANAGEMENT=$2BILLION LOSS

In the wake of JPMorgan Chase's $2 billion credit derivatives trading loss, the Comptroller of the Currency testified before Congress that the institution had "inadequate risk management within the office of the chief investment office." An examination of JPMorgan's activities has focused the spotlight on the Volcker Rule, which seeks to limit or ban proprietary trading. A Treasury Department Deputy Secretary testified that the final Volcker Rule should only allow hedging that reduces risks to specific positions held by an institution.