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UPDATE 2-Dimon to appear before Congress twice in June
May 31, 2012 / 2:20 PM / 5 years ago

UPDATE 2-Dimon to appear before Congress twice in June

* Senate panel originally sought hearing for June 7
    * House panel schedules June 19 hearing with Dimon
    * Regulators still reviewing trades


    By Dave Clarke	
    WASHINGTON, May 31 (Reuters) - JPMorgan Chase and Co 
Chief Executive Officer Jamie Dimon has agreed to testify before
two House and Senate panels next month to discuss recent trading
losses at the bank after some back and forth over what dates he
should appear.	
    On Thursday those calendar issues were settled and Dimon has
agreed to appear before the Senate Banking Committee on June 13
and the House Financial Services Committee on June 19.	
    The Senate panel had previously asked Dimon to appear on
June 7.	
    "June 13 is the only date in June that works for both the
Senate Banking Committee and Mr. Dimon," the committee said in a
statement.	
    Earlier this month, JPMorgan said it had suffered at least
$2 billion in losses from a set of trades that the bank said
were meant to hedge risk, but that some analysts and critics say
look more like speculation.	
    Regulators are examining what led to the losses before
making any decisions about whether JPMorgan and other large
banks will have to take steps to scale back the risk taking that
led to the losses.	
    The banks trading losses have added renewed vigor to the
debate in Washington over how tough regulators should be when
implementing the 2010 Dodd-Frank financial oversight law, passed
in response to the 2007-2009 financial crisis.	
    A particular focus has been the so-called Volcker rule,
which puts restrictions on bank trading activities.	
    A proposed rule was released in October, and a final version
is due in July, although it may be delayed by a few months.	
    Supporters of the Volcker rule want regulators to tighten a
provision in the October proposal that allows some trades to
escape a ban on proprietary trading if they are done to hedge
risk. They say the current proposal is too lax and would not
have prevented the type of risk-taking that led to the JPMorgan
losses.	
    The U.S. Commodity Futures Trading Commission is holding a
roundtable discussion on Thursday to discuss the Volcker rule.	
    The House Financial Services Committee also plans to hold a
hearing with Dimon, but has yet to announce a date.

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