First Senators, then this week Congressmen, called JP Morgan CEO Jamie Dimon to testify about the mega-bank’s recent trading losses. The now famous “$2 billion” in bad gambles by the country’s largest bank is widely reported to be closer to $3 billion already and expected to reach $5 billion by next year. Yet the superstar banker was questioned deferentially by the legislators, begging the question of why he was called to testify.
Dimon is earned more than $20.8 million in 2010 as the bank’s chief executive. He is the leading voice from the business community fighting new bank regulations, especially the coming Volcker Rule, which would limit banks like Morgan from gambling with clients’ money.
No U.S. legislator asked Dimon about the secret $1.2 trillion loans made to JP Morgan and other leading banks by the Federal Reserve during the height of the financial meltdown. It is estimated the six banks receiving this massive infusion of unreported funds were able to turn it into $13 billion in income from public money.