Published reports say JP Morgan Chase's Chief Investment Officer and two traders could be stepping down in the wake of the bank's $2-billion trading loss.
But some on Capitol Hill want more changes to make sure we don't see another economic collapse like the one that started in 2008.
Three top executives at JP Morgan Chase, including the Chief Investment Officer, could step down as soon as today in the wake of the bank's $2-billion trading loss. CEO Jamie Dimon apologized for ignoring warning signs about the complex trades the company made.
"We made terrible, egregious mistakes and there's no excuse for it," Dimon said on NBC's Meet the Press Sunday.
The JP Morgan investments were part of a hedging strategy, which many banks use to lower risks and protect profits.
"JP Morgan Chase and Jamie Dimon are the brightest guys in the room," says Michael Greenberger, former Wall Street Regulator. "If they have this problem, God knows how many other people have these problems. And this could lead us right back to where we were in 2008."
The announcment of JP Morgan's staggering loss is leading some in Congress to call for stronger regulation of Wall Street. Part of the 2010 financial overhaul, called the Volcker rule, would stop banks from making certain kinds of trades for their own profit. But the rule hasn't gone into effect yet and some banks are lobbying to have it repealed.
"We've got to be very, very careful that the regulators here are not undermined by this huge effort to weaken the rule, by putting in a huge loophole, which is called "portfolio hedging," said Sen. Carl Levin,(D-MI, on Meet the Press.
But some lawmakers, including Republican Senator John Thune (R-SD), are against tighter rules for banks.
"I think we need to make sure we've got all of the facts before we jump to any conclusions about the need for greater and further regulation," Thune said on Fox News Sunday.
Thune says more regulation would make it harder for banks to do their jobs.
(Susan McGinnis, CBS News)
But some on Capitol Hill want more changes to make sure we don't see another economic collapse like the one that started in 2008.
Three top executives at JP Morgan Chase, including the Chief Investment Officer, could step down as soon as today in the wake of the bank's $2-billion trading loss. CEO Jamie Dimon apologized for ignoring warning signs about the complex trades the company made.
"We made terrible, egregious mistakes and there's no excuse for it," Dimon said on NBC's Meet the Press Sunday.
The JP Morgan investments were part of a hedging strategy, which many banks use to lower risks and protect profits.
"JP Morgan Chase and Jamie Dimon are the brightest guys in the room," says Michael Greenberger, former Wall Street Regulator. "If they have this problem, God knows how many other people have these problems. And this could lead us right back to where we were in 2008."
The announcment of JP Morgan's staggering loss is leading some in Congress to call for stronger regulation of Wall Street. Part of the 2010 financial overhaul, called the Volcker rule, would stop banks from making certain kinds of trades for their own profit. But the rule hasn't gone into effect yet and some banks are lobbying to have it repealed.
"We've got to be very, very careful that the regulators here are not undermined by this huge effort to weaken the rule, by putting in a huge loophole, which is called "portfolio hedging," said Sen. Carl Levin,(D-MI, on Meet the Press.
But some lawmakers, including Republican Senator John Thune (R-SD), are against tighter rules for banks.
"I think we need to make sure we've got all of the facts before we jump to any conclusions about the need for greater and further regulation," Thune said on Fox News Sunday.
Thune says more regulation would make it harder for banks to do their jobs.
(Susan McGinnis, CBS News)
