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Good Thing We Have the Volcker Rule Thingo

posted by Stephen Lubben

Because otherwise JP MorganChase couldn't sink more of its too big to fail self into emerging markets hedge funds. But then they go and do it, for $6 billion. What am I missing? Holding it through a subsidiary reduces the risk? When Highbridge needs liquidity, who are they going to turn to?


What you are missing is the death of the regulatory structure. What SOX did for SIVs Dodd-Frank will accomplish for capitalization ie the taxpayer will always be there.

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