With the JP Morgan $2 billion plus trading loss being attributed to inadequate risk controls by the US Comptroller, it has once again proved a useful segue for Volcker Rule supporters to highlight the benefits of its pending introduction. Dimon, JP Morgan CEO, says however it was a trading loss from credit derivatives for hedging that morphed into a speculative loss. Whatever the case, all the big Wall Street banks, who are the biggest and loudest critics, have got exemptions anyways. It does of course demonstrate the blockers this piece of legislation is continuing to face. US Federal Reserve Governor Tarullo says that had the Volcker Rule been in place it would have enabled regulators to get an earlier look (as they would have had to justify its exemption in writing) so it validates the need for such regulation. It looks like the stage is set for the arguments to continue. Simon Johnson’s blog in the NY Times offers one of the best insights including a very interesting meeting he attended recently which the big banks had intended to attend but then decided not to after JP Morgan’s losses, leaving the elephants firmly out of the room.