JPM Chase Chairman, Jamie Dimon, the Whale Man, and Glass-Steagall - Thoughts - Nomi Prins

It's more than ironic, that JPM Chase, the bank still entangled with MF Global customer money, took the same bet, albeit with different credits and is trying to pawn it off as an ‘egregious' mistake, a blip on the radar of an otherwise pristinely risk-managed bank. It's also supremely annoying that Dimon is right about something, that the Volcker Rule wouldn't necessarily apply to this ‘hedge.' There's nothing particularly wrong with the Volcker Rule; it will mitigate some fraction of risk, though given the SEC and Fed's inability to understand what risk is, it's unlikely they'll take the mental leap to segment trades as mitigating it, or not. Yet, the Volcker Rule will not change one fundamental pillar of global systemic risk -- as long as banks are not segregated ala Glass Steagall along deposit-taking  / loan-making vs. speculation lines, they will have access to capital to burn. And burn it they will.