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FBN's Charlie Gasparino on what J.P. Morgan CEO Jamie Dimon plans to discuss at the Senate hearings about the company's massive trading losses.
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-- -- -- Morgan CEO had she done that if Washington tomorrow.
To testify before the senate.
Banking committee on the firm's massive trading lots -- -- see a -- -- part time and at Smart and you know he's not that kinder gentle right you wouldn't about it and I spoken to him I spoke to me of many that known since we both had great care this have greater and we don't do -- greater up.
Here's what we know.
Got some tidbits -- what he might say I'll be there Washington.
But what can I gotta get up before 30 in the morning to work out and then go so busy so busy but here's what we know we might be telling.
So all of this on a broad strokes cliff note version of his testimony.
I think he's gonna go into the London the -- trading losses we should point out that that investigation into those losses.
Which is why this is going on is not over they think maybe this could be.
A five billion dollar loss if you if you plan it out over a long time obviously gonna make a lot of money this year.
He's gonna go through but here's what we we hear this and this is what he's telling friends friends are calling him -- saying how you doing -- selling -- is going to be nice -- essentially at the senate -- -- not gonna see.
A very combative Jamie Dimon he's also telling them.
He's not and he he's getting not engage in arguments but at the same time he is and he does plan to stick to his guns in terms of key points.
About regulation -- -- regulations.
That he opposes like the vocal rule and it sort of very strict interpretation.
We also might know -- this kind of interesting he might soften his stance on the make a bank business model.
I think what you might see Jamie even on this year's -- is -- said this that we like JPMorgan Chase when you combine everything on the one roof -- why we get because.
We -- we can service our clients better you know making it banking services they can get brokerage services.
He might soften that and a bit where he might go out there.
According to one person who knows who's familiar with the matter and like firsthand familiar he might show the pluses and -- -- of this model we should point out.
That there's lots of -- right now not just from me you know you've I've been pretty much on record ever -- about this in the new foes.
It on the air that -- need I believe to break up big banks like JPMorgan just waiting we if there's any.
Crime here and this is not a crime it's too big to manage.
You might see Jamie kind of soften on that old mega bank model basically talking about the pluses and minuses that a model so here's what we -- -- -- this is a snapshot.
I do not have the the exact test -- I think we probably get that later on today at some point usually get that.
Also give some of these points he's probably -- to make these income in the in the cross examination part when they ask you questions.
Are we should also point out that those questions Google are wide ranging -- no no one's gonna ask about the mega bank model but I do think that will be something people asking is JPMorgan.
Too big to manage because there's been so what's written particularly after the stuff I've done.
There's if you know you -- fed officials coming out against that you -- Wall Street guys actually questioning and now this is a big story and it'll be a bigger story to go forward.
And I think this is where becomes a big story I think if.
Mitt Romney becomes the president Republicans when the senate and keep the house of Republicans controlling everything Dodd-Frank is probably toast to that in that event.
If Dodd-Frank is toast or at least they base a young women -- -- would guess portions of this thing.
What's going to be managing these banks I think you know the notion that they need to be smaller to be managed better -- regulated better should say not -- regulated better.
It's clearly gonna be in the in the ether so to speak more than -- they're gonna is gonna be active discussion about it.
Set -- -- for the type of panel will they be more friendly you know well tough looking like a Carl Levin in you know am I I -- Carl Levin is older of -- -- either himself.
-- I mean this is senate banking committee Tom I think.
Jamie Dimon has should he be most -- are fearful of.
You know I think you worry about Republicans more and here's why the Democrats and -- -- a long time Democrat here's what because they're gonna attack on his business model.
I don't think anybody thinks there's anything illegal here with a -- in the weight loss I mean.
On these all these breathless articles about you know they should know better people warned -- about this and that.
Okay by the way when you take when you lend someone money I'm sure -- people say maybe should -- XYZ money.
And sometimes you lose and I think that's kind of -- -- I think we're he gets on very very very thin nice is -- in his defense.
Of the big bank filed the fact effective have these huge mega institutions which if -- had the five of -- -- that we have now Citibank.
JPMorgan wells -- -- -- Morgan Stan and I guess in Goldman six but they're kind of plaza banks.
Nearly control like 6070%.
Of the sort of financial assets in the world huge amount.
He's on very thin -- I think.
If it's it's fascinating that you see much more ground -- about pop potentially break out the banks among conservatives Republicans libertarians because they're worried.
About taxpayers being on the hook bailing these things out there too big to fail.
He'll come out you know -- and so that too big to fail saying you know any institution that fail should be put out of business they shouldn't.
Taxpayers shouldn't bill now that's a lot easier said than done when you have something as big as JPMorgan with.
Various global enterprises people trading counter parties credit default swaps all that stuff goes -- freezes up guess what you have a cause of global financial crisis so.
I think that's where he.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Although likely contribute to that the -- tip -- twenty dollar fine they're talking about Massachusetts I don't -- -- acres much in my -- of it that's the most shot to.
