Jamie Dimon to give evidence on $2bn loss

 

JPMorgan Chase was trying to prepare for new international regulations designed to make the financial system safer when it put on the disastrous hedging strategy that has cost it $2bn and counting.

Jamie Dimon, the bank's chief executive, made the revelation in written testimony submitted to the Senate Banking Committee in the US before a hearing into the losses later today.

Instead of simply selling risky assets in order to get in compliance with forthcoming capital standards expected in the so-called Basel III accord, JPMorgan embarked on an ill-fated plan to offset potential losses on the assets with a series of inter-locking derivatives trades.

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