Ina Drew, one of the most powerful women on Wall Street, officially left her post as JPMorgan’s chief investment officer on Monday. Her departure comes after the bank announced a $2 billion trading loss last week. But it remains unclear whether the bank simply engaged in risky trading practices or if their portfolio hedging may have crossed the line.
In response to the bank’s loss, lawmakers are citing the Dodd-Frank Act, which, if passed, would impose new rules for banks, including more transparency when it comes to risky trading. But are more regulations the answer?
Terri Duhon is a financial expert and author. She is also a former derivatives trader with JPMorgan and says that no matter how many regulations Congress puts in place, they can never fully stop losses from happening in the banking system.