Following JP Morgan’s announcement last week that it had lost $2 billion in a hedge trade gone awry, the U.S. House Agriculture Committee decided to postpone a May 17 meeting on legislation that would limit the international reach of some Dodd-Frank provisions.
“As always, Washington has a tendency to overreact. While the news of JPMorgan’s trading loss is unfortunate, the bipartisan legislation the committee was scheduled to consider is unrelated to the cause of the trading loss,” committee chairman Frank D. Lucas (R-OK) said in a statement.
“However, this committee will take the time to gather all relevant information before we proceed to ensure there are no unintended consequences of the legislation that would encourage recklessness in our financial institutions,” Lucas said.
Industry groups have argued that applying Dodd-Frank to foreign branches of U.S.-based companies would hinder their ability to compete with overseas rivals.