JPMorgan Chase Fought Rule on Risky Trading

* Investment bank bet against CIO in derivatives market * Bank said to have discussed merging opposing trade books * Opposing bets could fuel claim JPM is too big to manage

(Adds other probe details starting in eighth paragraph.)

By Streetwise Blog: by Boyd Erman

By Michael T. Snyder: When news broke of a 2 billion dollar trading loss by JPMorgan (JPM), much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch of stuffy bankers trading stocks and bonds.

By Daryl Montgomery: JPMorgan Chase (JPM) revealed yesterday that one of its traders, Bruno Iksil, was responsible for a $2 billion loss in the last six weeks. Apparently, little has changed since 2008 when the irresponsible activities of the big banks and trading houses almost brought down the world financial system.

ByAlex Cho:I can not believe the media is still touting the London Whale event over at JPMorgan Chase (JPM). I think the media is overly exaggerating the negative consequences of the derivative losses that were made by JP Morgan and Chase. One example of this is Kate Kelly from CNBC: