Inside JPMorgan Chase CEO Jamie Dimon's apology
(CBS News) The chief executive officer of one of the world's biggest banks is in Washington to say he's sorry.
Jamie Dimon of JPMorgan Chase will testify before the Senate Banking Committee Wednesday about his firm's embarrassing loss. It recently came to light that the bank lost between $2 billion and $5 billion on a risky, complex set of trades.
According to his prepared testimony, Dimon is going to apologize by saying, "We will lose some of our shareholders' money and for that we feel terrible - but no client, customer or taxpayer money was impacted by this incident."Dimon to apologize before Congress
He's going to take the senators through some of the mistakes he feels led to this incident, CBS News Congressional correspondent Nancy Cordes reported on "CBS This Morning." He's also going to argue, however, that JPMorgan was profitable last year, and it's going to be profitable this year, and that the company can absorb these losses, even if they amount to $5 billion.
Cordes spoke to many of the senators on the committee, who say they will want to know the timeline of events. "What did Jamie Dimon know about these losses and when did he know it? Was the company forthcoming with government regulators," Cordes said. "And with its shareholders? And what they really want to know is do financial regulation, which are being written right now need to change as a result of these losses? Are these banks still too big to manage, too big to regulate?"
(Watch Nancy Cordes' report in the video above.)
New York Times columnist Joe Nocera, who has written extensively about JPMorgan Chase, said Wednesday on "CBS This Morning," there's potential for regulations to get tougher for banks as a result of this loss.
"We have a law now, Dodd-Frank, a reform law, but many of the regulations haven't been put in place yet," Nocera said. "And the banks, led by Jamie Dimon, have pushed hard to keep those regulations, you know, diminished. This really hurts the bank's ability to push back against regulations."
(For more with Nocera, watch the video in the player below.)
Democrats, Nocera said, will try to stiffen the rules around the type of trade that took place, which was legal.
"The Democrats are going to say, there's a rule on the books called the Volcker Rule which is supposed to prevent banks from making trades only for themselves. They don't have any client use. They want to stiffen that rule to prevent exactly the kind of trade that took place here. ... The Republicans are going to say, 'Look, yes, they lost $2 billion, yes, that's a lot of money. But JPMorgan can handle it. It's not a big problem and we shouldn't overreact.'"
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