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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.
To contact the reporters on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net; Phil Mattingly in Washington at pmattingly@bloomberg.net;
To contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net
JPMorgan’s Dimon Agrees to Testify in Senate on Trading Loss
Melissa Golden/Redux
JPMorgan Chase CEO Jamie Dimon.
JPMorgan Chase CEO Jamie Dimon. Photographer: Melissa Golden/Redux
May 15 (Bloomberg) -- U.S. Treasury Secretary Timothy F. Geithner, Sheila Bair, former chairman of the Federal Deposit Insurance Corporation, and Richard Bove, an analyst at Rochdale Securities, offer their views on JPMorgan Chase & Co.'s $2 billion trading loss and Chief Executive Officer Jamie Dimon. This report also contains comments from U.S. Republican Senators Bob Corker of Tennessee and Rob Portman of Ohio; Amar Bhide, a professor at Tufts University; Sarat Sethi, a principal and portfolio manager at Douglas C. Lane & Associates; Paul Miller, an analyst at FBR Capital Markets Corp.; Simon Johnson, a professor at the Massachusetts Institute of Technology, and Lisa Lindsley, director of capital strategies at the American Federation of State, County and Municipal Employees. (Source: Bloomberg)
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