Jamie Dimon, chairman and chief executive of JP Morgan Chase, plans to apologise before members of US Congress tonight for the bank’s $2bn trading losses.
“We have let a lot of people down, and we are sorry,” he said in written testimony ahead of his appearance, BBC reported.
Dimon tried to justify what happened, saying losses occurred because traders were poorly managed and were unaware of what was happening.
JPMorgan Chase mounted a companywide strategy to reduce risk in December 2011, but that backfired when one of the bank’s divisions added risk instead, he said in the prepared remarks.
The Banking Committee’s chairman, Senator Tim Johnson, says in his opening statement for tonight’s hearing that the bank had “an out-of-control trading strategy with little to no risk controls” that cost it billions, News.com.au reported.
“So what went wrong? For a bank renowned for its risk management, where were the risk controls?” Senator Johnson says. “How can a bank take on ‘far too much risk’ if the point of the trades was to reduce risk in the first place? Or was the goal really to make money?
However, Dimon’s testimony did not give information whether there is an increase in the bank’s losses which were estimated $2 billion last month.
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