Senate summons JP Morgan boss Jamie Dimon to explain $2bn losses

Tim Johnson, chairman of the Senate banking committee, said he wants to ‘hear directly’ from Dimon over trading losses

The Senate banking committee plans to call JP Morgan boss Jamie Dimon to Washington to explain how the bank lost $2bn in poorly-supervised trading.

Senator Tim Johnson, the chairman of the committee said it should “hear directly” from Dimon about the losses at America’s biggest bank.

Johnson did not specify when he would ask Dimon to appear, but the committee has two meetings slated for May 22 and June 6, and any hearing with Dimon would have to come after that.

The senator said he would be asking regulators already scheduled to appear at those meetings “to update the committee on the recently reported trading loss by JP Morgan Chase.”

JP Morgan’s $2bn-plus losses from its London trading offices are under investigation by the FBI and the Securities and Exchange Commission, and have triggered shareholder lawsuits.

Dimon has apologised for the losses and said they are likely to grow. He told shareholders this week that the bank is in no danger, as the losses are relatively small compared to the size of JP Morgan’s operations. Analysts expect the bank to make $4bn in the second quarter, even after the huge losses.

The move comes as president Barack Obama has begun using the growing losses at the US’s largest bank to push for tighter Wall Street regulation.

“Keep in mind if we get all the rules that we proposed and were passed by Congress implemented into law, it should prevent this kind of stuff from happening ,” Obama said during an interview on ABC’s The View.

He used the issue to draw a distinction between his Republican opponent, Mitt Romney. “We’ve got real differences here, because Governor Romney, some of the Republican members of Congress and the financial industry have been arguing that this is unnecessary, that this is impeding capital formation.” © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

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