JPMorgan Chase is set to testify before Congress today regarding the major bank’s multibillion-dollar trading blunder, and its effect on the future of trading regulation on Wall Street.
The Office of the Comptroller of the Currency is expected to face scrutiny over its poor oversight of the bank unit responsible for the loss, with top officials at the initially downplaying the significance of JPMorgan’s losing trades. The group is expected to impose remedial measures on the bank, in connection with its inquiry, said Thomas Curry, OCC chief, in written remarks to be delivered on Wednesday before the Senate banking committee.
The widely-publicized loss occurred after top executives from the bank’s chief investment office travelled to Washington to defend its trading activities; they attempted to show how new trading restrictions would threaten the future of the bank, and argued that the Volcker Rule could prevent the unit from hedging risk throughout the bank.