The $2 billion loss at JPMorgan Chase (JPM) has reopened debate on the Volcker rule. The proponents of the rule have seized on the story as proof that the Volcker rule is necessary and should be quickly put into effect by regulation. In reality, however, if the facts are as thus far reported, what happened at JPMorgan is proof that the Volcker rule is unworkable and should be repealed. 

American Enterprise Institute economist Peter Wallison explains why the recent JP Morgan losses are proof that the Volcker Rule is unworkable and should be abandoned.

It’s depressing to watch, but it is missing the point that the Volcker rule would not have prevented the loss and is probably unworkable.

Losing money is embarrassing. And an embarrassed Jamie Dimon publicly admitted that J.P. Morgan Chase goofed. Three senior executives lost their jobs as a result. But politicians and regulators in Washington are rushing to leverage the bank's misfortune for their own gain.

Looking at the Dodd-Frank Act through the lens of Adam Smith and Milton Friedman

A better structure for confronting financial crises is possible.

If the government chooses to regulate the capital markets, we will simply be assuring ourselves of many more financial crises in the future.

As the House of Representatives prepared to consider the Small Business Tax Cut Act, AEI economist Aparna Mathur gave testimony on why higher taxes and regulation on small businesses impede sustainable economic growth.