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New figures reignite prop trading battle

JP Morgan loss renews support for Volcker Rule, but bankers maintain regulatory focus is misguided

Trading losses at JP Morgan have thrown renewed focus on the trading activities of the world’s largest banks. But, according to new research, proprietary trading accounted for less than 4% of the overall banking losses suffered during the credit crunch.

The campaign against proprietary trading, when a bank makes bets with its own capital, is being led by former Federal Reserve chairman Paul Volcker, who has put forward regulation to limit the activity.

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