News

Senate Banking Committee hearing on JPMorgan trading losses rescheduled for June 13

Jamie Dimon

A Senate Banking Committee hearing on JPMorgan Chase & Co.’s $2 billion-plus trading losses, during which JPMorgan CEO Jamie Dimon is expected to testify, has been postponed and rescheduled for June 13.

Dimon will be unable to make the originally planned June 7 hearing due to travel plans, though JPMorgan said that Dimon plans to cooperate with regulators and will appear at the June 13 hearing, MarketWatch reports.

Dimon, who has spoken out against the 2010 Dodd-Frank financial reforms, announced the losses on May 10, with JPMorgan CIO Ina Drew resigning just four days later. Drew is accused of mismanaging a derivatives portfolio, which ultimately led to the massive losses, according to BBC News.

The trading losses have been cited by proponents of the Volcker Rule, a provision of Dodd-Frank that aims to prevent risky trades with client accounts. Advocates of financial reform have criticized financial industry lobbyists for delaying and watering down Dodd-Frank, MarketWatch reports.

Regulatory agencies have come into the public spotlight since JPMorgan announced the trades, and Commodity Futures Trading Commission Chairman Gary Gensler said last month that the losses reflected the need to bring international trades into the fold of derivatives regulation.

Gensler said the JPMorgan losses are a “stark reminder of how trades overseas can quickly reverberate with losses coming back into the United States” and that U.S. regulators should “not accept some of the industry’s comments that we exempt those [trades] from Dodd-Frank reforms,” according to MarketWatch.

Comments are closed.