Dimon Defends Bank's Disclosures

JPMorgan CEO meets with cooler reception from House Financial Services Committee.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon defended the company’s disclosures of a $2 billion trading loss as regulators and lawmakers questioned whether the largest U.S. bank misled investors.

“We disclosed what we knew when we knew it,” Dimon, making his second appearance on Capitol Hill in less than a week, said yesterday at a House Financial Services Committee hearing in Washington that exceeded four hours.

‘Dead Wrong’

Dimon said he was “dead wrong” when he dismissed news reports about the trades as a “tempest in a teapot” during an earnings call with analysts on April 13, three days after the London book lost $300 million in a single day.

Cooler Reception

Dimon was less warmly received in the House where lawmakers pressed him for more details about the bank’s disclosures, the change in VaR and lobbying against federal rules.

‘Held Accountable’

“Just as JPMorgan should be and is being held accountable for its risk-management failures, accountability must also be demanded of the federal regulators who oversee the bank’s activities,” Bachus said.

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