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JP Morgan’s bad bet takes center stage in Dodd-Frank debate

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Banking, Volcker Rule
Friday, May 18, 2012

The massive trading loss at JP Morgan Chase & Co. will be a main topic of discussion at several Dodd-Frank related hearings scheduled to take place in the coming weeks. Jamie Dimon, the company’s president and chief executive officer, is expected to testify following a pair of Dodd-Frank hearings before the Senate Banking Committee.

Senator Tim Johnson, D-S.D., Banking Committee chairman, said the panel plans to hold a hearing on May 22 to allow representatives from the Securities and Exchange Commission and Commodity Futures Trading Commission to share their perspectives. A June 6 hearing will allow lawmakers to hear from federal banking regulators and the Consumer Financial Protection Bureau.

“As part of these hearings, I have asked the appropriate regulators to be prepared to update the committee on the recently reported trading loss by JPMorgan Chase,” Johnson said. He added that Dimon was invited to testify at a hearing that will take place sometime after the first two Dodd-Frank hearings.

Johnson said Senate staff has held briefings with regulators regarding the trading loss, as well a briefing with the company itself.

“Our due diligence has made it clear that the banking committee should hear directly from JPMorgan Chase’s CEO Jamie Dimon,” he said.

No date for the Dimon appearance has been set.

The Wall Street Journal reported that the House Financial Services Committee also plans to hold a hearing on the implications of the JP Morgan trading loss. No date for the hearing was set, and it’s unclear if Dimon will be called to testify.
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