You're watching...
Senate Banking Committee holds hearing on huge trading error and federal oversight
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Fox News alert a huge day on Capitol Hill for the banking industry and its federal regulators the senate banking committee testimony and JPMorgan's multi billion dollar trading blunder last month.
And just how the feds allow that to happen or perhaps the bank of us.
-- abuse is looking into that live in Washington with the very latest so Peter who is taking more heat for this big loss right now JPMorgan.
Or the regulators.
Martha we have to wait and see exactly how things so shake out of the hearing but we've learned a lot about the investigation so far and we know the trouble started.
In late 2011 or early 2012 when JPMorgan changed its strategy they've started.
About five years prior -- back in 2007 or 2008 and an attempt to hedge or protect.
The company from losses and a very turbulent economic time JPMorgan.
Started investing big bucks in credit derivatives but then a few months ago JPMorgan's managers changed their strategy so there was less protection which meant their risk increased and -- lost.
The two billion dollars and we've seen some of the comptroller of the currency Thomas -- is prepared remarks and he will say.
That moving forward quote our analysis will focus on where breakdowns or failures occurred.
And comptroller Curry's office reportedly had about a hundred.
Regulators inside JPMorgan's headquarters when all this was going down so if there was an issue with oversight his department will likely -- some of the blame.
Very interesting so really I mean to JPMorgan have to explain that lost to anyone Arlen the government sort of -- -- out of -- out there today.
At today's hearing it's all government with folks from the Treasury Department the Federal Reserve the comptroller of the currency that -- -- federal.
Consumer protection bureau they're all going to be testifying today but a week from today next Wednesday.
JPMorgan CEO Jamie Dimon will.
Be grilled on the hill and in the meantime.
Federal Reserve governor Daniel to rule low is gonna say today that government regulators are working with JPMorgan to figure out how.
To best to manage and -- risk that huge portfolio because one of the nation's biggest banks and two billion dollars.
Well.
You know by most accounts it was a trading error.
Which happens when invest that money is put at risk in the market we're gonna see what happens Peter Doocy thank you very much.
