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Sen. Kay Hagan, (D-N.C.) on J.P. Morgan CEO Jamie Dimon’s testimony before the Senate Banking Committee and the questions that still remain over the...
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That's -- Republican who -- Jamie Dimon now let's bring in someone from the other side of the aisle senator K -- Also a member of the senate banking committee and she got a chance to question -- at today's hearing senator thank you so much for joining us appreciate it.
Thank you are not -- let me ask you can you know what it what was your goal in today's testimony -- -- satisfy.
I think say the key question here is.
But you know how how did this happen.
How did these two billion dollars of losses actually take place at a very very well managed bank.
And I think that's some of the surprises is that we're still.
We still don't know exactly what went on but I really do applaud -- Jamie -- for his open and forthright testimony.
About how.
Management was surprised about this than the changes that -- take it.
To be sure to mitigate things like this from happening in the future within the real key question -- How is it that traders overseas and this how did the regulators not that this -- management not -- this and ultimately -- shareholders through.
-- did you feel like you've got a response that because that's the question that we've all had a sort of how did other traders yet you was big enough for them to get on the other side of -- the regulators didn't know about it mr.
Dimon didn't know about it.
Well that's a specific question I asked mr.
-- -- -- and then you know in his response and I respect that is that you know this is still being investigated.
And he did that will be forthcoming I think and several weeks he said we will know much -- We also tried to you know I I was watching -- -- tried to get down on the details of the actual trade itself and he said you know we can't really revealed that because it puts his shareholders and compromising position did you buy that answer.
Well I think that they stop and might still be -- -- the trades to it to get out of the situations have.
You know as I said I certainly respect that but I do know that we will and we will.
He will be forthcoming and and but it will be determine exactly what went on but I think the key question too is -- How is it that management as well -- the regulators.
Would totally surprised by us.
What I think needs to change so it doesn't happen again or -- do you think that there is something from a legislative what -- you that could change that.
Well I think what we need to look at is the fact that the bank as well capitalized it will make a profit this quarter that this was in one division.
And so I think we need to look at what we did accomplish under Dodd-Frank and that is that our banks.
Are stronger now they've gone through stress tests that have been successfully completed they do have that their liquidity is greater their capital is greater.
And I think those -- the things that we have to.
Say that that Dodd-Frank has made the change and also we have much stronger consumer protection.
Laws regulation in place because of the Dodd-Frank and the consumer financial protection division that has been stood up now.
-- he made the point -- number of times in in his prepared statement and when he was answer the questions of the biggest risk he has really.
Is the 700 billion dollars in loans.
That he's made to the public to try to keep the financial system going.
But that is sort of the bigger risk than any treating that they're doing.
Do you buy that.
Well banks are obviously in business want to collect deposits but to to make -- and we as a country from large business the small business.
Have to have that liquidity in order to to do the job -- and have the markets that we want to have in the United States and obviously around the world.
So I'm a believer that we need to have large strong banks that controlled by these funds.
Of this capital to so many of our other banks businesses.
And obviously it would more people and I think we need to be competitive.
Against other countries.
That have a much more concentrated.
Number of banks.
-- country and -- and so that's why I think that we've got to look out for.
How well manage these banks aren't look at the capital look at the look liquidity and -- stress tests that we put in place I think that makes a lot of good sense.
You let the senator -- it made the point that this loss hasn't cost taxpayers diamonds aren't close to costing taxpayers -- at the same time.
You know it's a little hypocritical that the people questioning him are costing taxpayers a trillion dollars in deficit every year.
Do you appreciate that comment does it deal at all hypocritical from your -- Without.
We read -- banking committee hearing today the banking committee actually has the oversight responsibility.
For banks in our country.
And between 2007 and 2010.
Our citizens lost 39%.
Of of their assets.
The average asset -- in the US is a 126000.
-- to 77000.
During this period of time.
So I want to be sure that the financial crisis that we went through.
That we protect as much as possible to be sure that that doesn't happen again to be sure that we don't have banks that are too big to fail.
To be sure that taxpayer dollars are not going out to to solve the problem that we had.
So I think that's what this hearing was about today and I appreciate the fact that chairman Johnson and not ranking member Shelby.
Held this hearing and that Jamie Dimon came -- and testified.
It is -- Morgan too big you mentioned too big to fail I think to Ben.
I do not think they're -- -- I think that they are competitive they've got many different areas.
From the standpoint of business that they're doing and as he said that they gave the -- provide liquidity to other banks big banks small banks it's only the businesses.
That fuel the economy in our country.
Senator -- that you so much for joining us.
