JPMorgan (JPM) Trading Loss Tied to Increased Deposit Insurance?

In 2008, FDIC deposit insurance coverage increased from $100,000 to $250,000. These changes, which were later made permanent under Dodd-Frank, have resulted in an increase of institution insured-deposits from $8.2 trillion in 2007 to $10.2 trillion at the end of 2011.

Insiders say JPMorgan's (NYSE: JPM) trading loss illustrates the difficulty banks are having managing the influx of cash. The increased capital, combined with a lower-profit environment for banks, could be forcing banks to take on additional risk.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• JPMorgan (JPM) call put ratio 1.4 calls to 1 put into quarter results
• Zuckerberg: Meta has reached AI ‘frontier,’ rejects calls for slowdown
• JPMorgan Starts Santos Ltd. (STO:AU) (SSLZY) at Overweight