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Dodd-Frank, Volcker, the UK and JPMorgan

Can anybody explain to me the implications of Dodd-Frank and Volcker on UK investment banks?

As far as I can tell, JPMorgan's $2bil loss was as a result of trading operatings performed by its Chief Investment Office (which, despite what JPM say, is a hedge-fund in a bank i.e. a large prop desk) in its London office.

So even though JPM is subjected to Dodd-Frank in the states, does that mean it can do its prop trading out of London? I know there were plans of introducing a similar legislation in the UK, but I have to admit I don't know the current status of that - last I heard the tories were getting nervous at the idea.
If it is a US bank then I think it will subject to Volcker-Rule, because bank can not prove that no capital from US stakeholders are used in London, so in general they should subject to legislation from Dodd-Frank.

Dodd-Frank simply separates investment banking function from doing speculative trading. I think more country will adopt it, simply because good purpose can be twisted if you put too much power into one body.

Question is simple, will you let driver twist parameters of the engine of a car? Sometimes when you put two purpose together, goal is twisted because compromise will be made between the good function of the engine and where the car goes. I think government is trying to separate them and building a solid financial system(i.e. avoid some catastrophic risks of the types I described).