(5-15-12) The latest fiasco of JP Morgan Chase -- losing more than $2 Billion and counting -- shows once again the problems with the so-called Volcker Rule, which is supposed to ban deposit-taking banks from engaging in proprietary trading, which means trading on behalf of their own accounts.

This will not help to stop the flow of red ink in future investment bank losses, and despite JP Morgan CEO Jamie Dimon's mea culpa, calling the loss an "egregious" failure -- not to mention the conflict of interest he has by sitting on the New York Fed’s board -- there is little chance that anything will change in the incestuous world of investment banking and its regulators. Nothing will change until Congress comes up with, not a Volcker Rule, but some sort of rule that's actually enforceable regarding proprietary trading.

Since the so-called Volcker Rule, named after former Fed chairman Paul Volcker, who was responsible for the latest and greatest speculative bubble, allows investment banks who are Too Big To Fail (TBTF) to be eligible for a public bailout.