|DANIEL WAGNER, AP Business Writer|
Stock in the bank, the largest in
The disclosure, a surprise to stock analysts, quickly revived debate about whether banks can be trusted to handle risk on their own in the age of "too big to fail."
"The argument that financial institutions do not need the new rules to help them avoid the irresponsible actions that led to the crisis of 2008 is at least
Frank, the retiring Democratic leader of the
Dimon has been among
"This just tells you that we are a long, long way from getting our arms around this whole `too big to fail' issue," said Rossi, now executive-in-residence at the
"This is actually worse than
The head of the
Experts and industry officials were skeptical that the trading was designed to protect against
The bank appeared to have been betting for its own benefit, a practice known as "proprietary trading," said Rossi and other former bank executives.
Dimon said the type of trading that led to the
The Federal Reserve said last month that it would begin enforcing that rule in
"These instruments are not regularly and efficiently priced, and a company can wake up one day, as AIG did in 2008, and find out they're in a terrific hole. It can just blow up overnight," said Greenberger, a professor at the
On Friday, bank stocks were hammered in