As for Wednesday's scheduled news, JPMorgan Chase (JPM) CEO Jamie Dimon is set to testify before the Senate's Banking Committee about the shocking $2 billion (and counting) trading loss resulting from credit derivative hedging within its synthetic portfolio.
The debacle has been a severe blow to Dimon's image as Wall Street's teflon CEO and brought mockery down on the bank's so-called fortress balance sheet strategy. The hearing is slated to run from 10 a.m.-12 p.m. ET and the stated subject: A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase? provides a pretty clear idea of what line the questioning is going to take.
Whether this blunder ends up being enough to fire a serious debate about breaking up the big banks again remains to be seen but how Dimon handles this grilling and another before a House committee next week could go a long way toward determining whether he remains in the C-suite long term. Reports late Tuesday are saying Dimon is going to argue the loss, which could ultimately run as high as $5 billion, should be viewed as an "isolated event". Good luck with that.
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