WASHINGTON — The big question following JPMorgan Chase & Co.'s now-notorious derivative trade is whether it would have been permitted under the so-called 'Volcker Rule.' But the answer is clear cut to an advocacy group that has led calls for regulatory restrictions after the 2008 crisis.

In a conference call with reporters Friday, Americans for Financial Reform argued — counter to claims by the Wall Street giant — that the trades by the firm's London investment office resulting in at least $2 billion in losses is exactly the type of transaction that former Federal Reserve Chairman Paul Volcker's proposal was meant to stop. His idea, which bans commercial banks from proprietary trading, was enacted in the Dodd-Frank Act.

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