Jamie Dimon, JPMorgan Chase & Co. (JPM)’s chief executive officer, agreed to testify before a Senate committee on the company’s $2 billion loss as lawmakers debate whether to tighten rules on trading by U.S. lenders.
Dimon was asked to appear after the Senate Banking Committee concludes hearings on industry reforms in June, according to a statement from Chairman Tim Johnson, a South Dakota Democrat.
“As always, we will continue to be open and transparent with our regulators and Congress,” said Jennifer Zuccarelli, a spokeswoman for JPMorgan, who confirmed Dimon’s plan to testify. The New York-based lender is the largest in the U.S. by assets.
JPMorgan and regulators face pressure to explain the loss as lawmakers haggle over rules for the Dodd-Frank regulatory overhaul enacted two years ago. Dimon, 56, announced the loss May 10, assailing his firm’s handling of trading in synthetic credit positions as “flawed, complex, poorly reviewed, poorly executed and poorly monitored.”
While the company and regulators have briefed the committee over the past week, “our due diligence has made it clear that the Banking Committee should hear directly from JPMorgan Chase’s CEO Jamie Dimon,” Johnson said.
Johnson’s decision to invite Dimon came after joint staff briefings with federal regulators and a separate briefing from JPMorgan, the lawmaker said in a statement. The invitation comes as Congress increases scrutiny, with at least one Republican senator calling for Dimon to claw back pay from employees responsible for the losses and Senate Democrats using the disclosure to bolster their case for tighter restrictions on proprietary trading.
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