THIS PROBABLY ISN”T WHAT THE PEOPLE WHO WROTE THE VOLCKER RULE HAD IN MIND

Not to worry. Brian Moynihan isn’t about to make the same mistakes Jamie Dimon did:

Moynihan pointed out that BofA has nearly 90 percent of its money invested in government-guaranteed mortgage-backed securities or Treasuries, and very little in corporate debt — which the bank is “very comfortable with.” He also said the bank does not use “macro positions” to hedge like the ones that got JPM in trouble.

No macro hedges. Great! So there should be no problem with BofA’s Treasury and mortgage portfolios once interest rates start to rise. . . .