JP Morgan Chase's CEO will be on Capitol Hill to explain $2 billion loss!
POSTED: Wednesday, June 13, 2012 - 8:00am
UPDATED: Wednesday, June 13, 2012 - 8:04am
NBC NATIONAL NEWS — Today the embattled head of JP Morgan Chase heads to Capitol Hill to explain to congress how his bank lost two billion dollars making risky investments.
Three top executives lost their jobs over this.
Today Jamie Dimon faces tough questions about how it happened.
"We made a terrible egregious mistake. There's almost no excuse for it," said JP Morgan CEO, Jamie Dimon on NBC's Meet the Press.
Once again today, JP Morgan Chase CEO Jamie Dimon is expected to apologize for his bank's two billion dollar loss.
We've seen his prepared remarks.
He'll say no clients or taxpayers lost money and that they've got new leadership plus new safeguards against risky hedging.
He's also expected to emphasize that the bank still has plenty of money.
"It's the bank that every big company wants to have lead its bank deal and many of its bond deals. It's still the prettiest girl in the neighborhood," said Charles Bobrinskoy of Ariel Investments.
But Congress has some tough questions.
"Congress should be asking him how and why this happened. They should be pushing for a strong Volcker Rule and they should push back against portfolio hedging which is dangerous and which this was," said Lisa Gilbert, Public Citizen.
"We want the government to be able to take down a big bank like J.P. Morgan." JP Morgan CEO, Jamie Dimon.
But Dimon insists the government's already got the power to do it.
What has yet to be seen is whether Dimon will support even tougher regulation - strengthening the Volker rule that prevents speculation and whether Congress will crack down on the regulators who didn't stop it from happening.
"It will be a critical self review as part of this process," said Comptroller of the Currency, Thomas Curry.
A process that continues with Dimon's testimony.
He is the only scheduled witness to testify in front of the banking committee today.