The Senate Committee on Banking held a hearing, A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase? They had one witness, JPMorgan Chase CEO Jamie Dimon.
This one man apology show is about the $2 billion or greater trading loss JPMorgan Chase incurred due to speculative derivatives.
Truth be told the hearing was softball, not a grilling. This should be no surprise since JPMorgan Chase gives a lot of campaign contributions including those on the Senate Banking Committee.
Dimon revealed very little about the trade and not much more about his knowledge of it. He refused to discuss details of it, lest he reveal secrets to competitors -- who already know all about the trade and have been hammering JPMorgan on it, adding to the bank's losses. But the committee didn't challenge him on that, even after he turned down an offer to close the hearing to the public.
Bloomberg's story quote implies the Senators plain don't understand derivatives:
Recent comments