JPMorgan CEO Jamie Dimon reportedly "couldn't breathe" upon discovering the magnitude of the botched trading strategy that lost the bank billions of dollars, sources close to the famed executive tell The Wall Street Journal.
The loss, meanwhile, could rise as high as $5 billion from an initial estimate of $2 billion, the Journal adds.
The bank is still gauging the fallout and won't know the full extent of the damage for a while, as large trades were involved.
Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
When news of the loss broke, associates offered Dimon summaries of what happened, though not details.
"I want to see the positions!" Dimon barked, throwing down the papers, the Journal reports. "Now! I want to see everything!"
Upon seeing the numbers, source say, Dimon couldn't breathe.
Known for his excellence when it comes to risk management, Dimon approved of the concept behind the hedging strategy but didn't follow up and monitor how those trades were executed, the Journal goes on to say.
"I missed something bad," Dimon told his wife.
The trades in question, part of a strategy to hedge against other bank operations, have rekindled calls for increased regulation on the banking sector.
Probes and inquiries are already popping up, and Dimon has agreed to testify before a congressional panel.
U.S. Senate Banking Committee Chairman Tim Johnson invited Dimon to appear before lawmakers.
It's still unsure which committee will host Dimon, but he will go.
"As always, we will continue to be open and transparent with our regulators and Congress," JPMorgan spokesman Kristin Lemkau says in a statement, according to Reuters.
Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.
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