Yet, he pointed out, the CEO on Feb.29 filed a certification required by law that the bank had adequate risk controls in place and that management's assessment of the firm determined there were no material weaknesses in its internal controls or financial reporting as of Dec. 31, 2011.
"I know you are entitled to rely on your subordinates in making that certification, but was that certification correct?," Miller asked Dimon.
"It was to my knowledge at the time," Dimon replied.
When pressed on whether he believed it was still true based on his information now, the CEO was a little more evasive. " We try to disclose what we are supposed to disclose," he said and later added " I believed at the time that the risk controls at CIO[Chief Investment Office] were properly being done."
Dimon faced plenty of questions on regulation of foreign subsidiaries, the Volcker rule and too big to fail and the CEO rattled off many of his favorite talking points. He even added a new zinger when asked whether the bank could conceivably lose $50 billion. "Not unless the moon strikes the earth," Dimon said.
But he steered clear of being sucked into the politics of budget cuts.
"I have enough problems" Dimon said, declining to comment on whether there should be staff cuts at the CFTC.
Shares of JPMorgan were up by 2.5% on Tuesday.
JPMorgan Chase shareholders will have to wait till July 13 to get the answer to the one question that really matters- the size of the trading loss. The bank has scheduled a two-hour conference call on the day it reports to shed more light on the second quarter and CIO unit.
Written by Shanthi Bharatwaj in New York