Banks Push Congress For Loophole That Would Allow More JPMorgan-Like Disasters

Banks are pushing for exemptions from Dodd-Frank that would let them keep trading derivatives without regulation in London and elsewhere, HuffPo writes.

U.S. banks might act worried about how JPMorgan Chase's trading pratfall will lead to tighter regulations on their own risky bets, but they've already mapped out an escape route.  Banks for months have been vigorously working to get Congress to carve out a regulatory loophole that would let them keep trading derivatives in London and other overseas markets without any oversight. Meaning more episodes like JPMorgan's London Whale Fail forever.

A bill seeking these exemptions, H.R. 3238, known as the "Swap Jurisdiction Certainty Act," is working its way through Congress and is due for a vote in the House Committee on Agriculture on Thursday. It's one of seven bills in total seeking to water down various parts of the Dodd-Frank financial reform act, notes the advocacy group Public Citizen....

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