May 21, 2012
In the Media
Wall Street's Hellhound Puts JPMorgan's Loss in
Perspective
By James Pressley
Bloomberg
May 17, 2012
Timely scandals have often played a critical role in pushing
through financial reform legislation. Glass-Steagall was one
example. Another was Sarbanes-Oxley. After Enron Corp. collapsed,
Sarbanes-Oxley was facing significant opposition in Congress until
the WorldCom Inc. scandal was disclosed. The legislation sailed
through afterwards.
With the JPMorgan loss, the Volcker rule has already come
through Congress. So the relevant consideration is the effect this
scandal will have on regulators implementing the rule. I’m sure
they will argue harder for a stricter rule.