Dimon to Apologize in Testimony before Congress

Tuesday, 12 Jun 2012 05:46 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

JPMorgan Chase CEO Jamie Dimon plans to apologize before members of Congress on Wednesday for a trading loss of more than $2 billion and to say that the bank has taken steps to make sure it does not happen again.

"We have let a lot of people down, and we are sorry for it," Dimon plans to tell the Senate Banking Committee, according to prepared testimony released Tuesday by the bank.

Dimon plans to say that JPMorgan Chase mounted a companywide strategy to reduce risk in December 2011, but that it backfired in one of the bank's divisions by adding risk instead.

Dimon also plans to say that the bank has named a new leader to the division responsible for the loss, has established a risk committee and is conducting a review of what went wrong.

"While we can never say we won't make mistakes — in fact, we know we will — we do believe this to be an isolated event," Dimon said in the prepared testimony.

The trading loss has revived Democrats' push for stricter oversight of Wall Street banks, and the Securities and Exchange Commission is reviewing the matter.

Some Democrats have contended that the trades in question would have violated the so-called Volcker rule, which will bar large banks from making bets for their own profit.

The rule takes effect in July, and banks will have two years to comply. Dimon has been among the most outspoken critics of the rule.

He and other bank executives successfully pushed for an exemption for banks to make trades for their own profit if they are hedging against risk, as Dimon has contended the bank was doing in this case. Some lawmakers are asking top federal regulators to strip the exemption.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Author Phyllis Chesler: Obama 'Seems to be Siding With the Jihadists'

Saturday, 22 Nov 2014 21:57 PM

The United States can never defeat the Islamic State and other terrorist groups until President Barack Obama realizes t . . .

State Senator Protesting Ferguson a Victim of Attempted Carjacking

Saturday, 22 Nov 2014 19:56 PM

A Missouri state senator and gun-control advocate who has protested police actions in Ferguson surrounding the Michael B . . .

Report Questions if Dempsey Should Quit Over Obama's ISIS Strategy

Saturday, 22 Nov 2014 18:57 PM

The Obama administration's strategy of using only airstrikes against the Islamic State is frustrating military leaders,  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved