This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Jamie Dimon Sweats Little, Says Nothing

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM - Get Report) CEO Jamie Dimon stuck largely to his script in his testimony before the House Financial Services Committee on Tuesday, admitting lapses in the bank's risk management but highlighting that the incident was isolated, passionately defending his stand on bank regulations and trumpeting the "widest, deepest and best capital markets" of the United States.

Bottomline, shareholders did not walk away with any new information from this testimony.

JPMorgan Chase CEO Jamie Dimon testifies before the House Financial Services Committee on Capitol Hill on Tuesday.

Granted, the tone of the session was decidedly more aggressive tone than that of the Senate Banking Committee last week and there were points when the normally self-assured CEO looked a little flustered and weary.

Dimon faced some pointed questions on the bank's disclosure of changes to its risk model, after SEC Chairwoman Mary Schapiro said the regulator was investigating whether JPMorgan misled investors by failing to disclose a change in the Value at Risk model the firm had adopted for its CIO unit.

The change in the model understated the amount of money at risk by half, the bank said when it disclosed the loss in early May.

Dimon has since defended the bank's change to the models, saying that JPMorgan employs hundreds of trading models and makes changes all the time with the intention of improving the way the firm captures risk.

He, however, admitted that the recent change to the CIO VaR model, implemented in January, may have allowed the unit to take more risk than it should have and may have "aggravated" the trading losses. But the changes were not the cause of the problem, he said.

Once the bank determined that the new model was not capturing risk accurately, it switched back to the old model and then disclosed what it believed was actually at risk. "We disclosed what we knew when we knew it," Dimon told the House Financial Services Committee.

Rep. Brad Miller of North Carolina noted that Dimon himself had been critical of the bank's risk controls, calling the trading strategy poorly managed, poorly reviewed and poorly executed.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.31 -0.71%
C $51.00 -0.37%
JPM $59.55 0.02%
WFC $54.12 -0.70%
AAPL $123.25 -0.80%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs