JPMorgan loss shows global swaps rule need-Gensler
WASHINGTON May 21 (Reuters) - JPMorgan Chase and Co's recently announced trading loss of more than $2 billion is a "stark reminder" of how overseas trading can transfer risk back to the United States, the top U.S. futures regulator plans to say on Monday.
Speaking at a Conference held by the Financial Industry Regulatory Authority, Commodity Futures Trading Commission Chairman Gary Gensler will point to the loss - which involved credit default swaps - to highlight the need for a tough approach to global swaps regulation.
While the loss was incurred in London, "it appears that the bank here in the U.S. is absorbing these losses," he will say, according to prepared remarks.
The CFTC has been tasked by the 2010 Dodd-Frank financial oversight law with boosting transparency and limiting risk in the $708 trillion over-the-counter swaps market.
Widespread ignorance about swaps exposure, especially at insurer American International Group, severely damaged the financial system during the 2007-2009 crisis.
Gensler and Securities and Exchange Commission Chairman Mary Schapiro are scheduled to testify before the Senate Banking Committee on Tuesday.
Lawmakers are expected to press the two regulators about the losses and whether any laws or rules may have been broken.
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