Jamie Dimon was the biggest proponent for creating a loophole to the Volcker rule. The rule was designed by Congress to limit proprietary trading that may sink JPMorgan.
It was the efforts of Dimon and his staffers created a loophole in the law.
Dimon used his reputation as a Washington operator and the fact the JPMorgan came through the Wall Street financial crises intact to push for proprietary "portfolio hedging."
Senator Carl Levin, one of the architects of the Volcker Rule, said this:
As Sen. Levin noted:
(Portfolio hedging) is a license to do pretty much anything.
The traditional definition of hedging, matches an individual security or trading position with an inversely related investment. Thus, when one goes up, the other goes down.
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