“Over the next few weeks, the Senate Banking Committee will continue its oversight of the implementation of Wall Street reform by holding additional hearings with key financial regulators,” Johnson said, adding that JPMorgan’s massive losses will likely be discussed at the hearings, according to Bloomberg.
JPMorgan CIO Ina Drew will step down from her position at the bank for allegedly mismanaging a securities portfolio using various hedging instruments that led to the losses. Before the incident, Drew was a well-respected participant in the banking industry.
“Ina Drew has been a great partner over her many years with our firm,” Jaime Dimon, JPMorgans’ CEO, said, DealBook reports. “Despite our recent losses in the CIO, Ina’s vast contributions to our company should not be overshadowed by these events.”
The Senate Banking Committee will also hear from Federal Reserve representatives, as well as other regulatory agencies, regarding the implementation of the 2010 Dodd-Frank Act, a piece of legislation aimed at enhancing the health of and reducing risks in the U.S. financial system. The panel will not, however, hold a meeting to focus exclusively on the losses.
Proponents of enhanced financial regulation have made note of the JPMorgan losses, saying that such instances serve as an example as to why increased regulation is necessary. Sen. Bob Corker (R-Tenn.), a critic of Dodd-Frank, said that the committee would not hold a JPMorgan hearing because “maybe it points to some flaw in the Volcker Rule itself or flaw in Dodd-Frank,” according to Bloomberg.