JP Morgan CEO to apologise before US Congress

JP Morgan CEO to apologise before US Congress Zeebiz Bureau

New Delhi: Jamie Dimon, chief executive of JPMorgan Chase & Co may apologize before members of US Congress on Wednesday for a trading loss of over USD 2 billion, media reports said.

He has also reportedly said that the bank has taken steps to make sure it does not happen again.

Last month Fitch Ratings downgraded JPMorgan Chase's long term debt rating to A+ from AA- after the bank revealed a stunning trading loss.

JPMorgan Chase's had earlier disclosed a USD 2 billion trading loss on its synthetic credit positions in its Chief Investment Office.

The bank has named a new leader for the division responsible for the loss, has established a risk committee and is conducting a review of what went wrong, he says.

The trading loss has revived Democrats' push for stricter oversight of Wall Street banks. The Securities and Exchange Commission is also reviewing the matter.

Some Democrats contend that the trades in question would have violated the so-called Volcker rule, which will bar large banks from making bets for their own profit.

The rule takes effect in July, and banks will have two years to comply. Dimon has been among the most outspoken critics of the rule.

He and other bank executives successfully pushed for an exemption for banks to make trades for their own profit if they are hedging against risk, as Dimon has contended the bank was doing in this case. Some lawmakers are asking top federal regulators to strip the exemption.

With Agency Inputs