Forget the regulatory questions, forget the political fall out, forget the Volcker rule debate, how the hell can the management and board of Directors at JP Morgan allow a trading position at risk to create such a large loss? After 2008 when the effects of unbridled leverage and unchecked risk devastated the worldwide financial system it is beyond irresponsible to do it all over again. Have they learned nothing? It would be better if the two billion loss (and counting) was caused by a rogue trader in Hong Kong. This group was the pride and joy of the bank and had the expressed blessing from top management on down. Stop the madness! Throw the bums out! "Too big to fail", how about" Too Dumb to Let Live"? The bank can absorb the loss relatively easily but that is not the main point, the focus should be on the inability of the people in charge to make intelligent decisions about their business and their company. We are only three and a half years removed from the financial crisis and if you don't understand the lessons of 2008 you should not be allowed near the live ammo.
The corollary to this is once again the regulators, rating agencies and banking authorities had no idea; thereby cementing their place as part of the problem.