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facts are as thus far reported, what happened at JPMorgan is proof that the Volcker rule is unworkable and should be repealed. 

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.

The central issue in the debate overFannie Mae and Freddie Mac is nowwhether their portfolios of mortgages and mortgage-backed securities (MBS) should be capped or reduced.

The portfolios of mortgages and mortgage-backed securities held by Fannie Mae and Freddie Mac have now become the central issue in the legislative battle over improvements in their regulation.

Following testimony by Alan Greenspan, key members of Congress have begun to focus on the retained mortgage and mortgage-backed securities (MBS) portfolios of Fannie Mae and Freddie Mac as a major source of the risk they pose to taxpayers and the economy in general. Chairman Richard Shelby of the Senate...

Discolsures contained in SEC complaints further validate the necessity to look behind Fannie and Freddie's characterization of subprime loans.  

Committees in the U.S. Senate and House of Representatives have adopted bills that would modify the regulation of Fannie Mae and Freddie Mac, and both houses could act upon these bills in the fall. The most controversial element of the proposed legislation is a provision in the Senate committee bill...

Government housing policies and the toxic mortgages they spawned were the sine qua non of the financial crisis.