Dimon to appear before Congress

18 May 2012

Jamie Dimon will testify in Congress in order to clarify the series of events that led to JP Morgan's recent catastrophic trading losses.

The bank's chief executive officer has agreed to appear before lawmakers on Capitol Hill to explain how his organisation ended up over-investing in a hedging strategy that it ended up losing a minimum of $2 billion, Reuters reports.

Earlier this week, it emerged that the FBI is set to launch an investigation into the ill-fated strategy, which has sparked fresh calls for stricter regulations to be implemented in the US banking industry.

Meanwhile, Ina Drew - JP Morgan's former chief investment officer who led the strategy in question - has also retired from her position with the lender.

And it has now emerged that Tim Johnson, the US Senate Banking Committee chairman, has invited Mr Dimon to testify - a request that has been accepted.

Kristin Lemkau, spokeswoman for JP Morgan, told the news source: "As always, we will continue to be open and transparent with our regulators and Congress."

By Asim Shah

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