There were heated words on Capitol Hill yesterday as JPMorgan Chase CEO Jamie Dimon was grilled by members of the House. Dimon again was apologizing for his bank's multibillion dollar trading loss. He said it was embarrassing. Unlike his testimony before the Senate, yesterday's House Financial Services Committee hearing was far more contentious.
This morning on "Starting Point," Rep. Barney Frank (D-Mass.) explains why he was disappointed with Dimon's testimony.
See more from the interview in the clip below. Transcript available after the jump.
The managers at JPMorgan who were responsible for losing at least $2 billion of the bank's money might soon be feeling a little financial pain themselves. The bank's CEO, Jamie Dimon, telling senators yesterday that when the bank's board finishes its review, some employees might actually have to give back some of their bonuses.
It would be a first time for the firm, and it remains unclear whether Dimon, who's getting paid $23 million in compensation package for his performance, would be among those who would be subjected to the clawback.
Ken Feinberg, former administrator for TARP Executive Compensation and known as the 'pay czar,' explains whether it would be possible to get terminated employees to give back their bonuses.
JPMorgan Chase CEO Jamie Dimon will testify on Capitol Hill today. Dimon will appear in front of the Senate Banking Committee to explain why the bank's London office made a trade that cost the company $2 billion.
The company says the trade was meant to protect against risk, but questions loom about why the trade backfired and what Dimon knew about the transaction.
In prepared remarks, Dimon is expected to say the bank is investigating what went wrong and has instituted new policies to prevent such trades from taking place in the future. In the wake of the bad trade, the head of the investment operation in London has been replaced. But some are asking if more regulation would have prevented the risky bet.
Senator Bob Corker (R-Tenn.), a member of the Senate Banking Committee who will be at the hearing today, tells Soledad O'Brien on "Starting Point" this morning that "it's not about more regulation. It's about putting in place the right kind of structure."
See more from Soledad's interview with Sen. Corker in the clip below.
Lawmakers are about to get their chance to investigate JPMorgan Chase's deepening trading losses, which now some believe could potentially top that $2 billion number we've reported. This comes as CEO Jamie Dimon prepares to go before the bank's shareholders at the company's meeting today. Among other things they'll be voting on is Dimon's $23 million pay package.
This morning on "Starting Point," Banking Committee member Senator Jeff Merkley (D-OR) weighs in on what the JPMorgan Chase loss means for the banking industry. As a co-author of the Volcker Rule, which is part of a big set of Wall Street reforms passed in 2010, says if it had been implemented by now the rule would have prevented the type of investing that led to JPMorgan's losses.
“This is the type of investing, proprietary trading if you will, hedge fund style investing that specifically the Volcker Rule was designed to prevent," Sen. Merkley says. "If you want to be in the hedge fund business, great, sever your ties with insured deposits and take the big risks and the only people who get burned are your investors or your own funds but don’t do it and try to be inside the banking system, where we subsidize operations and provide loans, liquidity to families and businesses.”
Sen. Merkley also says that the type of investing JPMorgan Chase is engaged in is 'truly high-risk gambling.'