Why Jpmorgan Might Be Hiding Its Trading Size
JPMorgan has been accused of evading capital requirements created to prevent another financial crisis—a claim the bank denies. The Federal Reserve has allowed U.S. banks, including JPMorgan, to flout some of the norms established by common standards to regulate financial institutions critical to the health of the global economy. If the Fed is looking the other way, experts say it could diminish the meaning of these rules and lead other countries to follow suit.
- The laxity in enforcement allows large banks like JPMorgan to continue exploiting loopholes in the current capital requirements system, undermining efforts to ensure financial stability.
- Will increased scrutiny from regulators and public pressure force the Fed to take a stronger stance against banks that flout regulatory norms?