Dimon Faces Senators Over JPMorgan’s ‘Hedge Fund’-Style Trading

Bloomberg News – By Dawn Kopecki, Phil Mattingly, and Clea Benson – June 13, 2012

U.S. senators preparing to hear testimony from JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said they will press him to explain what led to more than $2 billion in trading losses and will be looking closely at whether they need to tighten exemptions in the so-called Volcker rule.

Reuters/Keith Bedford

U.S. Senator Jeff Merkley, the Oregon Democrat pushing for stronger restrictions on banks’ bets with their own money through proprietary trading, said this morning that JPMorgan took too much risk through a strategy the company described as hedging.

Portfolio hedging is just a name for saying anything goes, and we’ll continue proprietary trading,” Merkley said in an interview on Bloomberg Television.

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