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JP Morgan's Jamie Dimon faces House committee - US politics live JP Morgan's Jamie Dimon faces House committee - US politics live
(40 minutes later)
4.45pm: And finally – from the always awesome Fox News website.
4.29pm: BuzzFeed Politics has a nice scoop about anti-Romney protesters being paid by a union campaign to turn up and heckle the Republican candidate today:
At the candidate's afternoon stop outside a bakery in DeWitt, a group of about 15 protesters stood behind a police barricade, a few of them chanting in support of Obama. Asked why he was protesting, a man dressed in a grim reaper costume pointed a reporter to a pair of "designated representatives" standing in the shade.
"I can't talk, you gotta get one of those people over there to talk to y'all," he said. "They're the ones who can talk to reporters."
Neither of the representatives agreed to give their names, but two protesters said they were getting paid to stand outside of the rally, though their wage is unclear: one said she was getting $7.25 per hour, while another man said they were being paid $17 per hour.
The fauxtesters appear to have been paid by a union-backed group called Good Jobs Now, and not by the Obama campaign.
4.02pm: The speculation earlier today that Marco Rubio hasn't been among those on the shortlist to be Mitt Romney's vice presidential pick has set off a few ripples in the otherwise smooth Romney pond.
Romney himself is on Fox News tonight, saying:
I get a kick out of some of the speculation that goes on. I'm not going to comment on the process of course, but I can tell you this: only Beth Myers and I know who is being vetted.
That seems unlikely, unless Myers and Romney himself are doing all of the actual vetting.
But MSNBC have another choice quote, on the possibility of Romney picking a woman as VP candidate:
"I think unfortunately, Palin poisoned the well on that," said one informal Romney adviser, fretting that any woman selected as VP would draw inevitable comparisons to the former Alaska governor. "I would guess if I were inside the Romney mind that they're worried that any woman chosen will be subjected to a higher level of scrutiny. "
Meanwhile, a Rubio supporter publically blames an enemy within the Romney camp for the original anti-Rubio quote that he wasn't in the running.
3.13pm: The New York Times has a fascinating scoop: the Obama campaign's legal attempt to force a major Republican super pac – headed by Karl Rove – to disclose its donors:3.13pm: The New York Times has a fascinating scoop: the Obama campaign's legal attempt to force a major Republican super pac – headed by Karl Rove – to disclose its donors:
The lawyer for President Obama demanded on Tuesday that Crossroads GPS disclose its donors, saying in a complaint to the Federal Election Commission that the group is plainly a "political committee" subject to federal reporting requirements.The lawyer for President Obama demanded on Tuesday that Crossroads GPS disclose its donors, saying in a complaint to the Federal Election Commission that the group is plainly a "political committee" subject to federal reporting requirements.
In the complaint, obtained by The New York Times, Robert F Bauer, the campaign's chief counsel, writes that the group – founded by Karl Rove, among others – can no longer shield the identity of its donors by defining itself as a "social welfare" organization.In the complaint, obtained by The New York Times, Robert F Bauer, the campaign's chief counsel, writes that the group – founded by Karl Rove, among others – can no longer shield the identity of its donors by defining itself as a "social welfare" organization.
That's a shot across the bow of the anonymous donors pouring funds into super pac coffers – and could introduce a brief chill in their unstoppable rise since the Citizens United court ruling opened the floodgates.That's a shot across the bow of the anonymous donors pouring funds into super pac coffers – and could introduce a brief chill in their unstoppable rise since the Citizens United court ruling opened the floodgates.
But any legal action won't come to fruition until well after the election, even if successful.But any legal action won't come to fruition until well after the election, even if successful.
2.30pm: Mitt Romney, we learn via a snippet in the New York Times, writes off a big chunk of change in taxes involving his dressage horse Rafalca:2.30pm: Mitt Romney, we learn via a snippet in the New York Times, writes off a big chunk of change in taxes involving his dressage horse Rafalca:
The Romneys declared a loss of $77,000 on their 2010 tax returns for the share in the care and feeding of Rafalca, which Mrs Romney owns with Mr. Ebeling's wife, Amy, and a family friend, Beth Meyers.The Romneys declared a loss of $77,000 on their 2010 tax returns for the share in the care and feeding of Rafalca, which Mrs Romney owns with Mr. Ebeling's wife, Amy, and a family friend, Beth Meyers.
Daily Kos has an image of the tax deduction itemised in Romney's 2010 tax returns.Daily Kos has an image of the tax deduction itemised in Romney's 2010 tax returns.
Just found out Romney's tax write-off from his show horses was more than I made in total last year. So there's that.Just found out Romney's tax write-off from his show horses was more than I made in total last year. So there's that.
Quite. In fact it's more than the median fulltime annual wage.Quite. In fact it's more than the median fulltime annual wage.
2.10pm: The most interesting segment of Jamie Dimon's testimony came under questioning from Carolyn Maloney of New York, who pressed him on the bank's response internally to the emergence of the losses via the "London whale".2.10pm: The most interesting segment of Jamie Dimon's testimony came under questioning from Carolyn Maloney of New York, who pressed him on the bank's response internally to the emergence of the losses via the "London whale".
This is interesting because of Dimon's hesitant reponse when Maloney aksed – in effect – if the bank still added to the positions after the size and risk of the position had been uncovered within the bank itself.This is interesting because of Dimon's hesitant reponse when Maloney aksed – in effect – if the bank still added to the positions after the size and risk of the position had been uncovered within the bank itself.
Today's Wall Street Journal describes how such counter-intuitive trading was performed by the whale himself, Bruno Michel Iksil:Today's Wall Street Journal describes how such counter-intuitive trading was performed by the whale himself, Bruno Michel Iksil:
But as early as last year, Mr Iksil told the colleague that his positions had become so large they sometimes were hard to reduce. When trying to sell, he felt brokers moved the market lower to hurt him. In response, he sometimes bought at those lower prices to "punish" the broker, thereby adding to his positions, he told the colleague.But as early as last year, Mr Iksil told the colleague that his positions had become so large they sometimes were hard to reduce. When trying to sell, he felt brokers moved the market lower to hurt him. In response, he sometimes bought at those lower prices to "punish" the broker, thereby adding to his positions, he told the colleague.
Here's Dimon's testimony from today's transcript:Here's Dimon's testimony from today's transcript:
Maloney: And was the loss-making position increased in size after it began generating losses?Maloney: And was the loss-making position increased in size after it began generating losses?
Dimon: What I recall is that [pause] is that they weren't really increased in size after early April. That was the point I think they stopped taking positions. I think that was late March.Dimon: What I recall is that [pause] is that they weren't really increased in size after early April. That was the point I think they stopped taking positions. I think that was late March.
Maloney: And what was the delay between the start of the losses and senior management action?Maloney: And what was the delay between the start of the losses and senior management action?
Dimon: So, prior to April 13th, there had been some losses. Management was looking at it. People looked at stress testing. A lot of folks thought it was an aberrational thing that would come back, which happens sometimes.Dimon: So, prior to April 13th, there had been some losses. Management was looking at it. People looked at stress testing. A lot of folks thought it was an aberrational thing that would come back, which happens sometimes.
The real losses started later in April, like late April, like the last week of April. At that point we brought in some top experts again. They dug deep. And we realized we had a much more severe problem and that we – so it was late April that we started to...The real losses started later in April, like late April, like the last week of April. At that point we brought in some top experts again. They dug deep. And we realized we had a much more severe problem and that we – so it was late April that we started to...
[crosstalk][crosstalk]
Maloney: And what was the delay between the start of the losses and disclosure of the losses to the office of the comptroller of the currency on site at JP Morgan Chase?Maloney: And what was the delay between the start of the losses and disclosure of the losses to the office of the comptroller of the currency on site at JP Morgan Chase?
Dimon: I don't believe there was a delay of the disclosure of the losses. We were on a regulatory – we try to run the company, there were what I call open [inaudible] with the regulators. We tell them what we know and when we know it. I don't know exactly what all the reports they were looking at. But we don't hide reports from them. They do see [profit and loss statements]. So they saw the losses.Dimon: I don't believe there was a delay of the disclosure of the losses. We were on a regulatory – we try to run the company, there were what I call open [inaudible] with the regulators. We tell them what we know and when we know it. I don't know exactly what all the reports they were looking at. But we don't hide reports from them. They do see [profit and loss statements]. So they saw the losses.
I do know, at one point, our CO went to see them to explain what had happened, right prior to April 13th. We did not understand the seriousness of it until later in April. On April 13....I do know, at one point, our CO went to see them to explain what had happened, right prior to April 13th. We did not understand the seriousness of it until later in April. On April 13....
And there, sadly, Dimon was cut off by the chair to move on to the next questioner.And there, sadly, Dimon was cut off by the chair to move on to the next questioner.
2pm: Once again Jamie Dimon escaped largely unscathed from Capitol Hill in today's question and answer session, even if there were some more pointed questions, notably on the timing of what Dimon and the bank knew and what they did about it, and the possibility that Dimon's own compensation might be clawed back by the bank itself.2pm: Once again Jamie Dimon escaped largely unscathed from Capitol Hill in today's question and answer session, even if there were some more pointed questions, notably on the timing of what Dimon and the bank knew and what they did about it, and the possibility that Dimon's own compensation might be clawed back by the bank itself.
The market seems to agree: JP Morgans share price is up above $35.50, albeit in a rising market overall.The market seems to agree: JP Morgans share price is up above $35.50, albeit in a rising market overall.
We should note with sadness that neither Ron Paul nor Michele Bachmann – both members of this committee – didn't show up.We should note with sadness that neither Ron Paul nor Michele Bachmann – both members of this committee – didn't show up.
1.50pm: A few more questions about "too big to fail" – at one point Dimon says he wants JP Morgan to be "too good to fail," which is cute – and something about "too small to live off," a point about poverty made by Al Green, a Democrat from Texas, and suddenly it's all over.1.50pm: A few more questions about "too big to fail" – at one point Dimon says he wants JP Morgan to be "too good to fail," which is cute – and something about "too small to live off," a point about poverty made by Al Green, a Democrat from Texas, and suddenly it's all over.
Green says he wants to talk further with Dimon about "too small to live off," but things dissolve into uncertainty.Green says he wants to talk further with Dimon about "too small to live off," but things dissolve into uncertainty.
That's it then. What did we learn? Other than one congressman thinks Basel is pronounced "Basil".That's it then. What did we learn? Other than one congressman thinks Basel is pronounced "Basil".
1.43pm: David Scott, a Democrat from Georgia, actually has some praise for how JP Morgan helped handle mortgage foreclosures, which makes a change:1.43pm: David Scott, a Democrat from Georgia, actually has some praise for how JP Morgan helped handle mortgage foreclosures, which makes a change:
I want to start off by paying you and your operation down in Georgia a tremendous compliment. You know, Georgia's number one in home foreclosures, and we had a great home foreclosure event down there. And I want to say a good word for your folks down there in Georgia.I want to start off by paying you and your operation down in Georgia a tremendous compliment. You know, Georgia's number one in home foreclosures, and we had a great home foreclosure event down there. And I want to say a good word for your folks down there in Georgia.
1.37pm: Here's Dimon's ennui-tinged exchange with Democrat Michael Capuno from earlier:1.37pm: Here's Dimon's ennui-tinged exchange with Democrat Michael Capuno from earlier:
Capuno: Do you really think it's a smart idea to be cutting the legs out of one of those major regulators? Do you think that's good for America?Capuno: Do you really think it's a smart idea to be cutting the legs out of one of those major regulators? Do you think that's good for America?
Dimon: I have enough problems. I'm going to leave that to you.Dimon: I have enough problems. I'm going to leave that to you.
Capuno: Well, Mr Dimon, the only reason I ask is because you have had no hesitancy whatsoever in expressing opinions on other matters. I thought you might want to take an opportunity to express...Capuno: Well, Mr Dimon, the only reason I ask is because you have had no hesitancy whatsoever in expressing opinions on other matters. I thought you might want to take an opportunity to express...
Dimon: I know nothing about their budget. I don't know how many employees they have. I really don't know. So it would be – I try not to have a comment if I know nothing.Dimon: I know nothing about their budget. I don't know how many employees they have. I really don't know. So it would be – I try not to have a comment if I know nothing.
Capuno: Well, I'd like you to learn it and maybe get back to us on the answer.Capuno: Well, I'd like you to learn it and maybe get back to us on the answer.
Dimon: Fine.Dimon: Fine.
1.33pm: Jamie Dimon appears to be getting bored with being asked the same question over and over about financial regulation, and replies "I'll leave that to you" when asked what he'd like to see for the umpteenth time.1.33pm: Jamie Dimon appears to be getting bored with being asked the same question over and over about financial regulation, and replies "I'll leave that to you" when asked what he'd like to see for the umpteenth time.
An interesting question about the risk managemrnt policies of the CIO, the unit that cost the bank a bundle. Dimon certified that its policies were sound in 2011 – but they weren't.An interesting question about the risk managemrnt policies of the CIO, the unit that cost the bank a bundle. Dimon certified that its policies were sound in 2011 – but they weren't.
Dimon looks mildly annoyed for a change and replies that he thought they were at the time, end of story. Which raises the question, why bother with such declarations?Dimon looks mildly annoyed for a change and replies that he thought they were at the time, end of story. Which raises the question, why bother with such declarations?
1.22pm: Did you support Dodd-Frank? Dimon is asked by Patrick McHenry, a reference to the post-financial crisis package of legislation. "Parts of Dodd-Frank we supported, parts of Dodd-Frank we didn't support," says Dimon unhelpfully, having explained that the financial crisis brought out a lot of flaws in the current system.1.22pm: Did you support Dodd-Frank? Dimon is asked by Patrick McHenry, a reference to the post-financial crisis package of legislation. "Parts of Dodd-Frank we supported, parts of Dodd-Frank we didn't support," says Dimon unhelpfully, having explained that the financial crisis brought out a lot of flaws in the current system.
Some grandstanding going on here, as a committee member gets into some heavy semantics over what constitutes bankruptcy and what should happen to banks that really do fail.Some grandstanding going on here, as a committee member gets into some heavy semantics over what constitutes bankruptcy and what should happen to banks that really do fail.
Boorishly, McHenry says Dimon should be able to easily define the difference between trading and hedging after 30 years in the business. But Dimon's right: it's not so easy to do in modern financial markets.Boorishly, McHenry says Dimon should be able to easily define the difference between trading and hedging after 30 years in the business. But Dimon's right: it's not so easy to do in modern financial markets.
1.18pm: The Guardian's Dominc Rushe is watching Jamie Dimon give testimony to the House financial services committee – and thinks the House is posing some tougher questions than its Senate colleagues did last week:1.18pm: The Guardian's Dominc Rushe is watching Jamie Dimon give testimony to the House financial services committee – and thinks the House is posing some tougher questions than its Senate colleagues did last week:
Jamie Dimon is getting a far harder time from the congressional financial services committee today than he did in the Senate last week. Not that that would be hard, as readers may remember that one ended with them lobbing softball questions about his views on Europe.Jamie Dimon is getting a far harder time from the congressional financial services committee today than he did in the Senate last week. Not that that would be hard, as readers may remember that one ended with them lobbing softball questions about his views on Europe.
Brad Sherman pretty much sums up the tone of today's hearing: "Why should we allow you to be so big that if you go under, we are going to have to bail out your creditors?"Brad Sherman pretty much sums up the tone of today's hearing: "Why should we allow you to be so big that if you go under, we are going to have to bail out your creditors?"
Dimon is on the defense but he looks pretty comfortable. He said a lot of banks were "the port in the storm" and the JP Morgan's size and diversification had allowed it to pull through the credit crisis and "allowed us to do the things you wanted to do" including buying failing banks like Washington Mutual, lending money to California and investing in Chrysler. He looks like the captain of the football team waiting for the end of a detention for some jape he knows will have no long-term impact on his life.Dimon is on the defense but he looks pretty comfortable. He said a lot of banks were "the port in the storm" and the JP Morgan's size and diversification had allowed it to pull through the credit crisis and "allowed us to do the things you wanted to do" including buying failing banks like Washington Mutual, lending money to California and investing in Chrysler. He looks like the captain of the football team waiting for the end of a detention for some jape he knows will have no long-term impact on his life.
1.04pm: On this subject, today's Wall Street Journal has an examination of the so-called "London Whale" trader at the centre of the losses:1.04pm: On this subject, today's Wall Street Journal has an examination of the so-called "London Whale" trader at the centre of the losses:
JP Morgan Chase & Co trader Bruno Michel Iksil at times resisted sharing some details of his positions with superiors, while trading executive Achilles Macris had a history of clashing with co-workers, according to current and former colleagues.JP Morgan Chase & Co trader Bruno Michel Iksil at times resisted sharing some details of his positions with superiors, while trading executive Achilles Macris had a history of clashing with co-workers, according to current and former colleagues.
Mr Iksil, a Frenchman known as "the London whale" for his outsize positions, and the Greek-born Mr Macris are at the center of at least $2bn of losses at the nation's biggest bank by assets. Each remains at the bank but is expected to leave, according to people at the bank.Mr Iksil, a Frenchman known as "the London whale" for his outsize positions, and the Greek-born Mr Macris are at the center of at least $2bn of losses at the nation's biggest bank by assets. Each remains at the bank but is expected to leave, according to people at the bank.
What's that Skippy? A couple of "rogue traders" threw the bank down the well?What's that Skippy? A couple of "rogue traders" threw the bank down the well?
More damning details:More damning details:
Mr Iksil attended École Centrale Paris, one of France's most prestigious engineering schools, where he played tennis before graduating in 1991.Mr Iksil attended École Centrale Paris, one of France's most prestigious engineering schools, where he played tennis before graduating in 1991.
12.55pm: Here's a question for Jamie Dimon: would the proposed Volcker Rule – a bar on proprietary trading and hedge fund ownership – actually increase risk? It's meant to be a softball, I think, but Dimon treats it like a grenade. After a pause Dimon says he can't answer because, hey, there are lots of rules and regulations out there.12.55pm: Here's a question for Jamie Dimon: would the proposed Volcker Rule – a bar on proprietary trading and hedge fund ownership – actually increase risk? It's meant to be a softball, I think, but Dimon treats it like a grenade. After a pause Dimon says he can't answer because, hey, there are lots of rules and regulations out there.
This time, though, Dimon says that he doesn't think the Volker Rule would have made any difference to the bank's losses at question here. That's a slight from Dimon's "probably" from last week.This time, though, Dimon says that he doesn't think the Volker Rule would have made any difference to the bank's losses at question here. That's a slight from Dimon's "probably" from last week.
12.44pm: Next question, from California Democrat Brad Sherman – well, a statement really: If you'd have invested all that money you lost in London in American businesses, you wouldn't have lost it all would you?12.44pm: Next question, from California Democrat Brad Sherman – well, a statement really: If you'd have invested all that money you lost in London in American businesses, you wouldn't have lost it all would you?
Jamie Dimon says all those profits and assets overseas are invested in America.Jamie Dimon says all those profits and assets overseas are invested in America.
When Sherman points out an IMF report about JP Morgan's implied support from the US government via "too big to fail"-style policies, Dimon gets fiesty, pointing that JP Morgan bought up the smoking ruins of Bear Stearns and WaMu, at the government's behest:When Sherman points out an IMF report about JP Morgan's implied support from the US government via "too big to fail"-style policies, Dimon gets fiesty, pointing that JP Morgan bought up the smoking ruins of Bear Stearns and WaMu, at the government's behest:
Banks should take risks relative to their size and capability. So you can't compare all the banks. And I would venture – and I'm not going to change what you believe – but a lot of banks were a port in the storm.Banks should take risks relative to their size and capability. So you can't compare all the banks. And I would venture – and I'm not going to change what you believe – but a lot of banks were a port in the storm.
I know it's convenient to blame them all for everything. But JP Morgan's size and capability and diversification in 08, 09 and 2010 allowed us to continue to do the things that you wanted us to do. We never stopped making loans. We bought Bear Stearns at the request of the United States government. We helped the FDIC fund by buying Wamu. We lent money to California, New Jersey. It allowed us to do it.I know it's convenient to blame them all for everything. But JP Morgan's size and capability and diversification in 08, 09 and 2010 allowed us to continue to do the things that you wanted us to do. We never stopped making loans. We bought Bear Stearns at the request of the United States government. We helped the FDIC fund by buying Wamu. We lent money to California, New Jersey. It allowed us to do it.
So we try to be a conservative company that does the right thing. Every now and then we make mistakes.So we try to be a conservative company that does the right thing. Every now and then we make mistakes.
He also argues that if investors really believed that JP Morgan was too big to fail, its bonds would trade about the same price as US Treasuries.He also argues that if investors really believed that JP Morgan was too big to fail, its bonds would trade about the same price as US Treasuries.
After the losses in London, I doubt that, says Sherman, contradicting himself.After the losses in London, I doubt that, says Sherman, contradicting himself.
12.42pm: More argy-bargy about whether or not the committee should have put Jamie Dimon under oath. Because people love arcane procedural arguments.12.42pm: More argy-bargy about whether or not the committee should have put Jamie Dimon under oath. Because people love arcane procedural arguments.
12.40pm: Now here's a good question: why should you, Jamie Dimon, sit on the board of the New York federal reserve?12.40pm: Now here's a good question: why should you, Jamie Dimon, sit on the board of the New York federal reserve?
You guys make the rules, says Dimon. We basically sit around talking about the economy and that's a good thing, he says.You guys make the rules, says Dimon. We basically sit around talking about the economy and that's a good thing, he says.
12.34pm: OK, I spoke too soon about the quality of the questions. After a question about reimposing Glass-Steagal – which Jamie Dimon bats away easily – here's one about what Dimon thinks about gambling.12.34pm: OK, I spoke too soon about the quality of the questions. After a question about reimposing Glass-Steagal – which Jamie Dimon bats away easily – here's one about what Dimon thinks about gambling.
Dimon nows runs through all the magnificent things that JP Morgan does that aren't gambling, slightly in the manner of Jack Nicholson's rant in A Few Good Men:Dimon nows runs through all the magnificent things that JP Morgan does that aren't gambling, slightly in the manner of Jack Nicholson's rant in A Few Good Men:
The last quarter we did $40bn in mortgages. I assume you want us to do that. We're the biggest or one of the biggest small business lenders in the United States. We raised $400bn or $500bn for the biggest American corporations. We bank some of those corporations in 20 countries around the world. Our main mission is serving those clients, investors, capital issuers, small businesses and consumers. That's what we do. We lost $2bn on Chrysler. I assume you'd want us to continue to lend to Chrysler.The last quarter we did $40bn in mortgages. I assume you want us to do that. We're the biggest or one of the biggest small business lenders in the United States. We raised $400bn or $500bn for the biggest American corporations. We bank some of those corporations in 20 countries around the world. Our main mission is serving those clients, investors, capital issuers, small businesses and consumers. That's what we do. We lost $2bn on Chrysler. I assume you'd want us to continue to lend to Chrysler.
You can't handle the truth, congressman.You can't handle the truth, congressman.
"What is the purpose of hedging?" wonders Gary Ackerman, another Democrat from New York. Sadly time is over before Dimon can gives his Econ 101 answer."What is the purpose of hedging?" wonders Gary Ackerman, another Democrat from New York. Sadly time is over before Dimon can gives his Econ 101 answer.
12.24pm: Surprisingly, the questioning seems to be a bit sharper today rather than last week. Is that because JP Morgan, er, invests fewer contributions in House members than Senate members?12.24pm: Surprisingly, the questioning seems to be a bit sharper today rather than last week. Is that because JP Morgan, er, invests fewer contributions in House members than Senate members?
12.20pm: Hum. Off her Londonophobia, Maloney asks a tricky question to Dimon about the timing of JP Morgan's disclosure of its losses and what it hedged when. Something must be up because Dimon pauses – possibily for the first time in either hearing – and seeks advice from someone behind him.12.20pm: Hum. Off her Londonophobia, Maloney asks a tricky question to Dimon about the timing of JP Morgan's disclosure of its losses and what it hedged when. Something must be up because Dimon pauses – possibily for the first time in either hearing – and seeks advice from someone behind him.
Dimon appears to default to an answer about JP Morgan's next quarterly announcement, when the losses will be explained, on 13 July.Dimon appears to default to an answer about JP Morgan's next quarterly announcement, when the losses will be explained, on 13 July.
I'm not exactly sure what this is all about but Dimon seemed unsure of himself for the first time, uncharacteristically.I'm not exactly sure what this is all about but Dimon seemed unsure of himself for the first time, uncharacteristically.
12.18pm: As mentioned earlier, New York congresswoman Carolyn Maloney has something against London as a financial centre. Pointing out that Dimon actually lives in her district – hello local voter! – she demands to know why he's shipping overseas to those ungrateful British (who don't live in her district).12.18pm: As mentioned earlier, New York congresswoman Carolyn Maloney has something against London as a financial centre. Pointing out that Dimon actually lives in her district – hello local voter! – she demands to know why he's shipping overseas to those ungrateful British (who don't live in her district).
"I always thought you loved New York. Why is all this business in London?" wonders Maloney. Why do you hate America Jamie Dimon?"I always thought you loved New York. Why is all this business in London?" wonders Maloney. Why do you hate America Jamie Dimon?
And this on the anniversary of the start of the War of 1812, which was started by a horse futures contract gone awry.And this on the anniversary of the start of the War of 1812, which was started by a horse futures contract gone awry.
12.12pm: Former reality TV "star" Sean Duffy – turned Tea Party favourite – is mildly hostile, asking if JP Morgan is too big to fail. When Dimon boasts about how big JP Morgan's balance sheet is, Duffy asks if JP Morgan could sustain a $50bn loss? "Not unless the moon strikes this earth," replies Dimon. That's factored into the VaR model, is it?12.12pm: Former reality TV "star" Sean Duffy – turned Tea Party favourite – is mildly hostile, asking if JP Morgan is too big to fail. When Dimon boasts about how big JP Morgan's balance sheet is, Duffy asks if JP Morgan could sustain a $50bn loss? "Not unless the moon strikes this earth," replies Dimon. That's factored into the VaR model, is it?
Tell that to AIG investors, mister.Tell that to AIG investors, mister.
"I'm pretty sure somewhere in Dodd-Frank there's a prohibition on the moon striking the Earth," notes Bachus dryly."I'm pretty sure somewhere in Dodd-Frank there's a prohibition on the moon striking the Earth," notes Bachus dryly.
12.05pm: Democrat Maxine Waters is asking some searching questions about why JP Morgan lobbys against overseas regulations, given that what happens in London can hurt banks in the US. Dimon slithers out of the question, defending his bank's general right to lobby for whatever it sees fit, and that regulations overseas impacts JP Morgan's operations there.12.05pm: Democrat Maxine Waters is asking some searching questions about why JP Morgan lobbys against overseas regulations, given that what happens in London can hurt banks in the US. Dimon slithers out of the question, defending his bank's general right to lobby for whatever it sees fit, and that regulations overseas impacts JP Morgan's operations there.
12.02pm: Here's Barney Frank, and he wants to know Dimon's views about regulation of derivatives. But Dimon's not giving an answer, and Frank says he's "disappointed".12.02pm: Here's Barney Frank, and he wants to know Dimon's views about regulation of derivatives. But Dimon's not giving an answer, and Frank says he's "disappointed".
Frank also wants to know if Dimon's own pay will be subject to "claw-back" after what's happened. Dimon says that's 100% up to the JP Morgan board.Frank also wants to know if Dimon's own pay will be subject to "claw-back" after what's happened. Dimon says that's 100% up to the JP Morgan board.
Now there's some issue about who speaks next, a dispute between the two parties.Now there's some issue about who speaks next, a dispute between the two parties.
11.56am: A member wants to know Jamie Dimon's view on the crisis in Europe, which is interesting if hardly relevent. Anyway, Dimon thinks that the "smart people" he talks to expect a fiscal treaty to be signed, which would be something.11.56am: A member wants to know Jamie Dimon's view on the crisis in Europe, which is interesting if hardly relevent. Anyway, Dimon thinks that the "smart people" he talks to expect a fiscal treaty to be signed, which would be something.
11.52am: Now the committee is having some question about if Jamie Dimon should be testifying under oath.11.52am: Now the committee is having some question about if Jamie Dimon should be testifying under oath.
It seems that the committee chair, the committee chair Spencer Bachus says: "I see no evidence this is a criminal proceeding." Oh well. Another high point for congressional committees there.It seems that the committee chair, the committee chair Spencer Bachus says: "I see no evidence this is a criminal proceeding." Oh well. Another high point for congressional committees there.
11.48am: And Jamie Dimon kicks off his House testimony by repeating, seemingly word for word, his opening statement to the Senate banking committee last week.11.48am: And Jamie Dimon kicks off his House testimony by repeating, seemingly word for word, his opening statement to the Senate banking committee last week.
He closes with:He closes with:
I would also like to speak directly for a moment to our 260,000 employees, many of whom are watching this hearing today. I want all of you to know how proud I am of JP Morgan Chase, the company and how proud I am of what you do every day for your clients and communities around the world. Thank you.I would also like to speak directly for a moment to our 260,000 employees, many of whom are watching this hearing today. I want all of you to know how proud I am of JP Morgan Chase, the company and how proud I am of what you do every day for your clients and communities around the world. Thank you.
11.40am: Not long to go now before Jamie Dimon starts speaking at the House committee on financial services. If the usual trends apply, then this committee will make last week's Senate committee hearing seem like a symposium of Nobel Prize winners in physics.11.40am: Not long to go now before Jamie Dimon starts speaking at the House committee on financial services. If the usual trends apply, then this committee will make last week's Senate committee hearing seem like a symposium of Nobel Prize winners in physics.
11.31am: So you can criticise the White House for not acting, and then when it does act, criticise it for a "power grab"? Smooth move there Senator Marco Rubio, who is taking his ball home after the Obama administration's move on immigration last week:11.31am: So you can criticise the White House for not acting, and then when it does act, criticise it for a "power grab"? Smooth move there Senator Marco Rubio, who is taking his ball home after the Obama administration's move on immigration last week:
Rubio's decision comes in the wake of President Obama's announcement last week that his administration would halt deportations of certain undocumented youth, a policy that essentially undercut the GOP senator's proposal. In multiple interviews Monday, Rubio faulted Obama for derailing his effort, which he had worked on for three months.Rubio's decision comes in the wake of President Obama's announcement last week that his administration would halt deportations of certain undocumented youth, a policy that essentially undercut the GOP senator's proposal. In multiple interviews Monday, Rubio faulted Obama for derailing his effort, which he had worked on for three months.
"People are going to say to me, 'Why are we going to need to do anything on this now. It has been dealt with. We can wait until after the election,'"Rubio told the Wall Street Journal. "And it is going to be hard to argue against that.""People are going to say to me, 'Why are we going to need to do anything on this now. It has been dealt with. We can wait until after the election,'"Rubio told the Wall Street Journal. "And it is going to be hard to argue against that."
Of course if Senaor Rubio had actually published a bill or something, he'd have a case. But he didn't.Of course if Senaor Rubio had actually published a bill or something, he'd have a case. But he didn't.
11.12am: Democratic party congresswoman Carolyn Maloney of New York asks the big question:11.12am: Democratic party congresswoman Carolyn Maloney of New York asks the big question:
Rep. Carolyn Maloney: every big trading disaster happens in London. Why?Rep. Carolyn Maloney: every big trading disaster happens in London. Why?
Good question Representative Maloney. One answer is that perfidious British bankers want to steal away your precious American gold.Good question Representative Maloney. One answer is that perfidious British bankers want to steal away your precious American gold.
11am: In case you were wondering, before Jamie Dimon takes the hot seat, the House committee is hearing from a variety of financial regulator rock stars, including SEC chair Mary Schapiro, the Comptroller of the Currency Thomas Curry and the Commodity Futures Trading Commission chair Gary Gensler, among others. It's basically a Woodstock '69 line-up for Wall Street regulation.11am: In case you were wondering, before Jamie Dimon takes the hot seat, the House committee is hearing from a variety of financial regulator rock stars, including SEC chair Mary Schapiro, the Comptroller of the Currency Thomas Curry and the Commodity Futures Trading Commission chair Gary Gensler, among others. It's basically a Woodstock '69 line-up for Wall Street regulation.
10.50am: Guys, Mitt Romney sometimes tells awkward jokes, and the New York Times is ON IT:10.50am: Guys, Mitt Romney sometimes tells awkward jokes, and the New York Times is ON IT:
At the breakfast, Mr Romney introduced two of his sons, Matt and Craig, in a slightly unusual fashion. "I love them," Mr Romney said. "I love them like they're my own. And they are! Craig!"At the breakfast, Mr Romney introduced two of his sons, Matt and Craig, in a slightly unusual fashion. "I love them," Mr Romney said. "I love them like they're my own. And they are! Craig!"
With that, Craig Romney rescued the microphone from his father.With that, Craig Romney rescued the microphone from his father.
Embarrassing Dad or Weirdo? You decide.Embarrassing Dad or Weirdo? You decide.
GUYS, eBooks do not smell like printed books, and The Times is ON IT. nyti.ms/LXWejlGUYS, eBooks do not smell like printed books, and The Times is ON IT. nyti.ms/LXWejl
By the way, this is where that formulation comes from.By the way, this is where that formulation comes from.
10.40am: While we're waiting on Dimon to appear – you know it's a slow news day when this is the lead item on the Drudge Report:10.40am: While we're waiting on Dimon to appear – you know it's a slow news day when this is the lead item on the Drudge Report:
A Massachusetts man has pleaded not guilty to attacking a bicyclist with sausage links and a wrench before making off with jewelry and the bike.A Massachusetts man has pleaded not guilty to attacking a bicyclist with sausage links and a wrench before making off with jewelry and the bike.
10.30am: It's round two of Jamie Dimon versus Congress, as the JP Morgan chief executive faces his second session of testimony on the subject of the bank's huge "London Whale" trading losses.10.30am: It's round two of Jamie Dimon versus Congress, as the JP Morgan chief executive faces his second session of testimony on the subject of the bank's huge "London Whale" trading losses.
Last week Dimon was given a largely generous ride by the Senate banking committee, and today he's even less likely to have much trouble before the Republican-dominated House committee on financial services.Last week Dimon was given a largely generous ride by the Senate banking committee, and today he's even less likely to have much trouble before the Republican-dominated House committee on financial services.
The wild card is that House committees tend to be more flaky and erratic than Senate committees – with members prone to grandstanding since they get fewer chances in the spotlight, so who knows what questions Dimon may face out of left-field?The wild card is that House committees tend to be more flaky and erratic than Senate committees – with members prone to grandstanding since they get fewer chances in the spotlight, so who knows what questions Dimon may face out of left-field?
But based on last week's performance, Dimon will handle this circus – pardon me, I mean members of the House of Representatives – with ease.But based on last week's performance, Dimon will handle this circus – pardon me, I mean members of the House of Representatives – with ease.
In the meantime, here's a summary of other news from Ryan Devereaux:In the meantime, here's a summary of other news from Ryan Devereaux:
• Marco Rubio, the Florida senator thought to be a top contender as Mitt Romney's running mate, has not been vetted for the position, ABC News reports. Jonathan Karl says "reliable sources" have told him Rubio "has not been asked to complete any questionnaires or been asked to turn over any financial documents typically required of potential vice presidential candidates."• Marco Rubio, the Florida senator thought to be a top contender as Mitt Romney's running mate, has not been vetted for the position, ABC News reports. Jonathan Karl says "reliable sources" have told him Rubio "has not been asked to complete any questionnaires or been asked to turn over any financial documents typically required of potential vice presidential candidates."
• A new poll from Bloomberg finds a majority of voters support president Obama's recent decision to stop deporting certain undocumented young people. According to the survey, 64% of likely voters said they agreed with the president's decision. Broken down by party, 86% of Democrats and 66% of independents supported the decision, and 56% of Republicans opposed it.• A new poll from Bloomberg finds a majority of voters support president Obama's recent decision to stop deporting certain undocumented young people. According to the survey, 64% of likely voters said they agreed with the president's decision. Broken down by party, 86% of Democrats and 66% of independents supported the decision, and 56% of Republicans opposed it.
• Mitt Romney is returning to New York City next week to drum up money for his campaign efforts. The former Massachusetts governor will attend a major event in New Jersey with governor Chris Christie, as well as a fundraiser at the $70m apartment of wealthy couple Martin and Barbara Zweig.• Mitt Romney is returning to New York City next week to drum up money for his campaign efforts. The former Massachusetts governor will attend a major event in New Jersey with governor Chris Christie, as well as a fundraiser at the $70m apartment of wealthy couple Martin and Barbara Zweig.
• The president has a new debate practice partner: Senator John Kerry. As Obama prepares to face Romney in at least three crucial contests of rhetorical nimbleness this fall, Kerry has assumed the role of the former Massachusetts governor. Kerry has a reputation as a strong debater and, like the GOP candidate, he is also very wealthy, owns multiple homes and has been known to flip-flop on issues, essentially he is already inside Romney's mind.• The president has a new debate practice partner: Senator John Kerry. As Obama prepares to face Romney in at least three crucial contests of rhetorical nimbleness this fall, Kerry has assumed the role of the former Massachusetts governor. Kerry has a reputation as a strong debater and, like the GOP candidate, he is also very wealthy, owns multiple homes and has been known to flip-flop on issues, essentially he is already inside Romney's mind.
• Obama's nominee for consideration as ambassador to Iraq, Brett McGurk, has withdrawn his nomination for the position. Members of the senate had resisted McGurk's nomination, and an anonymous source leaked intimate emails exchanged in 2008 between McGurk, who was then working for the state department in Iraq, and a reporter for the Wall Street Journal covering the conflict there. The pair later married.• Obama's nominee for consideration as ambassador to Iraq, Brett McGurk, has withdrawn his nomination for the position. Members of the senate had resisted McGurk's nomination, and an anonymous source leaked intimate emails exchanged in 2008 between McGurk, who was then working for the state department in Iraq, and a reporter for the Wall Street Journal covering the conflict there. The pair later married.