Daily News: June 13, 2012

Dimon: JPMorgan Traders Didn’t Understand Risks

JPMorgan Chase chief executive officer Jamie Dimon told Congress the bank let traders take risks they didn’t understand while he didn’t answer key questions about more than $2 billion in trading losses, Bloomberg said in article posted on Wednesday, June 13, 2012.

In testimony prepared for a hearing today, Bloomberg said Dimon expressed regret over losses in the bank’s chief investment office, saying that its trading strategy was “poorly conceived and vetted” by senior managers who were “in transition” and not paying adequate attention.

“This portfolio morphed into something that, rather than protect the firm, created new and potentially larger risks,” Bloomberg quoted Dimon as saying ahead of his appearance before the Senate Banking Committee. “We have let a lot of people down, and we are sorry for it.”

To read the Bloomberg story, click here.