Dimon testifies before Congress
Wednesday, June 13, 2012 10:49 AM
Jamie Dimon, the CEO of JPMorgan Chase & Co., told Congress this morning that the bank's chief investment office took risks it didn't understand and a lack of oversight from senior managers allowed the bank to lose $2 billion in investments.
In a testimony before the Senate Banking Committee, Dimon said he "feels terrible" about the losses JPMorgan took on, but did not answer any questions about when he knew the chief investment office was losing money, according to Bloomberg.
He also assured the committee that JPMorgan's second quarter would be profitable and that, although the company did lose shareholders' money, it did not lose any client money or taxpayer money, according to Bloomberg.
Many of the questions Dimon was asked centered on how the chief investment office, which was intended to reduce the banks risk, could end up taking on more risk than it could handle.
Since JPMorgan announced the loss in May, shares of the company's share price has dropped 17 percent. Currently, the Securities and Exchange Commission, the Federal Reserve, the Comptroller of the Currency, the Department of Justice and the Commodity Futures Trading Commission are all looking into what happened, according to Bloomberg.