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Treasury’s Geithner Met Dimon to Discuss Volcker Rule
Treasury Secretary Timothy F. Geithner met with JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon in March to discuss the Volcker Rule, according to records of meetings released by the Treasury Department.
In the March 6 meeting, the two also discussed derivatives trading, and capital and liquidity requirements, the records showed. The Volcker Rule, part of the Dodd-Frank Act overhauling financial regulation, restricts proprietary trading by banks with federally insured deposits.
Dimon on May 10 disclosed what he called an “egregious” trading loss of $2 billion in the New York-based company’s chief investment office. Regulators, including the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission, are examining the loss.
Bryan Hubbard, an OCC spokesman, said this week that it was “premature to conclude” whether the trades would have been either permitted or banned under the Volcker Rule, which hasn’t yet taken effect.
A spokeswoman for the Federal Reserve, Barbara Hagenbaugh, said the central bank, which supervises JPMorgan’s holding company, is studying organizational issues around the trading loss to ensure they aren’t repeated in other areas of the bank.
Geithner in March also met with bankers including Bryan Jordan, CEO of Memphis-based First Horizon National Corp.; Beth Mooney, CEO of Cleveland-based KeyCorp (KEY); and Jim Rohr, CEO of Pittsburgh-based PNC Financial Services Group Inc., the Treasury said.
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