The Senate Banking Committee has asked Jamie Dimon, CEO of JPMorgan, to explain the bank’s recent $2 billion loss. This is an astounding trading loss that should concern employees, shareholders and customers of JPMorgan.
Yet $2 billion pales in comparison to the $6.6 billion in cash that agents of the Defense Department lost while in Iraq, according to Paul Richter’s Los Angeles Times article from June 13, 2011. While JPMorgan can point to an existing, albeit flawed, strategy, the government could not even explain why the cash was lost.
If Sen. Johnson (D-S.D.) is correct that this loss of $2 billion shows JPMorgan is operating with an “out-of-control trading strategy with little to no risk controls,” then how would Sen. Johnson describe the federal government?