"While it wasn't his intention, Jamie Dimon today made the case for a strong Volcker Rule. I was pleased to hear him say that he doesn't want to be in the hedge fund business and that these proprietary trades should not have been made. These large gambling losses are exactly why we need a strong loophole-free Volcker firewall that separates traditional banking and hedge-fund style trading. We cannot continue to allow massive proprietary trades disguised as risk management, hedging, or market-making.
"I hope that when regulators implement the Volcker Rule in July, Dimon follows through on his statements to Congress today and ensures that JPMorgan's Chief Investment Office ends the practice of using depositors' funds for high-risk hedge fund investing.
"To make sure this happens, regulators need to finalize strong rules that provide bright, enforceable lines. Banks should be lending to small businesses and families, not making high-risk bets that create systemic risk for our entire economy."