Heads rolling after $2 billion JP Morgan loss
WASHINGTON (NBC) - JP Morgan Chase, one of the banks taxpayers bailed out four years ago, is preparing to accept three resignations this week after losing two billion in risky bets gone bad.
On Meet The Press, Sunday, the company's CEO admits they missed red flags. "We made a terrible, egregious mistake and there's almost no excuse for it. . . .We took far too much risk. The strategy we had was badly vetted, it was badly monitored, it should never have happened," said JP Morgan-Chase CEO, Jamie Dimon.
This week the company's Chief Investment Officer, one of the highest ranking women on Wall Street, is expected to step down, along with two people who worked under her.
Dimon says they're open to government scrutiny. But is Washington's watchdog on the job? And what happens when regulators aren't on the lookout for these risky investments? "Who gets left holding the bag if that happens? The taxpayers, That's what this is all about," said Andrew Ross Sorkin, CNBC & NY Times Columnist.
Democrats want to make sure the law they put in place to crack down on Wall Street is being enforced. "If we can prevent these kind of bets from being made, we can avoid ever again having to bail out banks," said Senator Carl Levin, (D) Michigan.
But Republicans have long argued. The law is too strict. "You have so much government regulation coming in that you can't see the forest for the trees," said Marsha Blackburn, (R) Tennessee.
A mistake, shining new light on the effort to keep banks accountable for how they're managing your money.
JP Morgan's credit was downgraded, and the company lost 15 billion in value on the stock market after this loss was announced.