By John C. Dugan and T. Timothy Ryan, Jr.
Jamie Dimon’s congressional testimony on trading losses has again stirred debate on the notion of “too-big-to-fail” banks.
JPMorgan Chase & Co. (JPM)’s losses were buffered by a strong balance sheet and sufficient capital levels to avoid putting the bank at risk. Nevertheless, opponents of the Dodd-Frank financial reform’s resolution process have used this to resurrect their belief that the law has not ended “too big to fail,” but instead codified it into law. As former bank regulators who both sat on the Federal Deposit Insurance Corp. board, we disagree.
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