Clearinghouses come under Fed scrutiny after JPMorgan raises alarm

Washington

JPMorgan Chase & Co and BlackRock Inc have argued for years that a key response to the last financial crisis could help fuel the next one. Global regulators are starting to heed their warnings.

At issue is the role of clearinghouses - platforms that regulators turned to following the 2008 meltdown to shed more light on the US$700 trillion swaps market. A pivotal goal was ensuring that losses at one bank don't imperil a wide swath of companies, and the broader economy.

Now, Federal Reserve Gov…