JPMorgan's Dimon says will testify before Congress

Thu May 17, 2012 5:45pm EDT
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By Dave Clarke

WASHINGTON (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon has agreed to testify before Congress over the bank's recent trading losses, which have ignited a political debate over whether large U.S. banks need to be reined in by regulators or new laws.

U.S. Senate Banking Committee Chairman Tim Johnson said in a statement on Thursday that his panel will invite Dimon to appear before Congress.

He did not say on what date the committee wants Dimon to testify but that it would follow a set of hearings with regulators on the trades and efforts to implement Wall Street reforms that will conclude on June 6.

"As always, we will continue to be open and transparent with our regulators and Congress," JPMorgan spokesman Kristin Lemkau said in a statement. She said Dimon will appear before the panel.

Last week JPMorgan announced that it has suffered at least $2 billion in losses due to trades that went bad.

Johnson said committee staff has been discussing the losses with regulators and the bank since they were disclosed and have determined Dimon should testify.

Critics of Wall Street have pointed to the trades as evidence that reforms called for under the 2010 Dodd-Frank financial oversight law should be strictly enforced once finalized.

Two regional Federal Reserve presidents have said the losses underscore the point that banks like JPMorgan are too big to manage and should be broken up.   Continued...

A protester in the Occupy Wall Street movement holds a protest sign with the face of JPMorgan CEO Jamie Dimon as he participates in a rally in New York, May 15, 2012. REUTERS/Keith Bedford