Compliance

10:48 AM
Reuters
Reuters
News
Connect Directly
RSS
E-Mail
50%
50%

Dimon to Appear Before Senate Panel June 13

JPMorgan Chase and Co Chief Executive Officer Jamie Dimon will testify before the U.S. Senate Banking Committee on June 13 to discuss the bank's recent trading losses, the committee said on Thursday.

JPMorgan Chase and Co Chief Executive Officer Jamie Dimon will testify before the U.S. Senate Banking Committee on June 13 to discuss the bank's recent trading losses, the committee said on Thursday.

The committee had previously asked Dimon to appear on June 7.

"June 13 is the only date in June that works for both the Senate Banking Committee and Mr. Dimon," the committee said in a statement.

Earlier this month, JPMorgan said it had suffered at least $2 billion in losses from a set of trades that the bank said were meant to hedge risk, but that some analysts and critics say look more like speculation.

Regulators are examining what led to the losses before making any decisions about whether JPMorgan and other large banks will have to take steps to scale back the risk taking that led to the losses.

The losses have also added renewed vigor to the debate in Washington over how tough regulators should be when implementing the 2010 Dodd-Frank financial oversight law, passed in response to the 2007-2009 financial crisis.

A particular focus has been the so-called Volcker rule, which puts restrictions on bank trading activities.

A proposed rule was released in October, and a final version is due in July, although it may be delayed by a few months.

Supporters of the Volcker rule want regulators to tighten a provision in the October proposal that allows some trades to escape a ban on proprietary trading if they are done to hedge risk. They say the current proposal is too lax and would not have prevented the type of risk-taking that led to the JPMorgan losses.

The U.S. Commodity Futures Trading Commission is holding a roundtable discussion on Thursday to discuss the Volcker rule.

The House Financial Services Committee also plans to hold a hearing with Dimon, but has yet to announce a date.

Shares of JPMorgan were up 0.1 percent at $33 in morning trading. (Reporting By Dave Clarke; Editing by Gerald E. McCormick and Lisa Von Ahn)

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Slideshows
Video
Bank Systems & Technology Radio