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3/22/13 - Tighter Scrutiny of Trading Expected in Wake of Whale Dissection

The March 14 report from the Senate Permanent Subcommittee on Investigations on the "London Whale" loss at JPMorgan Chase & Co. has deep implications for U.S. banking companies with trading operations. Regulators are on notice that they must demand better risk management, governance, and controls over trading and hedging activities, regardless of the Volcker Rule's final form and implementation. Banks are sure to feel the influence of regulators' increased resolve to examine these activities.

Banking companies with trading operations should expect front-line examiners to focus their attention on a number of areas described in this Sightlines InFocus by Kathy Dick, "Tighter Scrutiny of Trading Expected in Wake of Whale Dissection."

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