Losses inexcusable but US should not overreact: JPMorgan CEO

Dimon during his speech said that Washington must not overreact to JPMorgan's trading loss.

Zeebiz Bureau

Washington: Apologising for the bank's multibillion-dollar trading loss before the US Congress JPMorgan Chase & Co Chief Executive Jamie Dimon said that senior bank executives responsible for a USD 2 billion trading loss will probably have some of their pay taken back by the company.

Though Dimon admitted during the hearing that he had made big mistakes, he declined in a television interview shortly afterward to say if he will give up any of his own pay, which last year amounted to USD 23 million, including a bonus of USD 4.5 million.

Dimon however during his speech said that Washington must not overreact to JPMorgan's trading loss and tighten new rules so much that it hurts financial markets.

Dimon told senators the trades started as a genuine hedge that would make the firm a lot of money if a credit crisis hit, staring down questions about whether it was really a speculative bet hidden from shareholders and regulators.

"This particular synthetic credit portfolio was intended to earn a lot of revenue if there was a crisis. I consider that a hedge," Dimon said. "What it morphed into, I will not try to defend."

With Agency Inputs