JPMorgan Chase & Co.’s switch to a new risk model may have helped fuel a $2 billion trading loss at the chief investment office, Chief Executive Officer Jamie Dimon told a U.S. Senate panel today.
Amid chants from protesters, Dimon arrived shortly before 10 a.m. and began answering questions about the causes of the loss, which he described as part of a hedging strategy.
“If you put too much penalty on risk judgment, what kind of world are you going to have?” Blankfein, 57, said at the Chicago Club. “If you’re getting pounded and being made to ask questions, what kind of economic system do we have?”
Dimon said he feels “terrible” that the firm will lose shareholder money, yet defended the bank by saying lawmakers needed to put the losses “into perspective,” noting that no client, customer or taxpayer money was impacted. He said the second quarter would be “solidly profitable.”