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Sen. Richard Shelby, (R-Ala.), on J.P. Morgan CEO Jamie Dimon’s testimony on the bank’s losses.
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-- did Jamie Dimon fully explain what happened.
He admits he was dead wrong when he dismissed the trading losses a tempest in a teapot.
But did he go far enough in his explanation.
Let's ask Alabama senator Richard Shelby the top Republican on the banking committee.
-- great to have you on the show again as a hallway area.
You know I expect kind of you know -- a square -- it was I hit buildings like the OK corral everybody.
Fleeing their guns but in fact it was really pretty orderly.
Were you satisfied with the answers to the questions -- You've got.
I was not totally satisfied because they -- Ready to answer in other words JPMorgan.
Case has a proprietary interest in.
The position they took dealing with the derivatives.
They did won't be explained and perhaps -- that he explained.
In sequence what -- alone -- wow.
And neither did the regulators -- to do -- a week before but we will get that information other than that.
I thought.
Mister -- was rather forthcoming.
But he was not given away proprietary information.
Perhaps we shouldn't.
All right -- US to very interesting question I thought which was.
Why if there were a hundred banking regulators on site there didn't we know about these problems earlier would you here.
Well we didn't.
Found out a lot there either I think what we need to do is Andy is get the regulators backed up in a couple of weeks something like that when they've had time.
Time to go back.
And on while.
In this deal from their perspective to see.
What exactly happened why it happened and was this managing risk -- was it's something else today within learned that but than that out.
So mister -- handled himself very well for the committee.
Well he was -- cool customer.
He apologized.
He looked calm he even spoke.
In -- way you can understand when he talked about that some of these complicated investments.
I thought he was not at all rattled by these questions in fact very confident did that have an impact on how the committee questioned him.
I think so that he can't have been up hero while I would say.
That he was well prepared.
-- this committee he was.
I felt fairly candid with us as much as he could be considered as proprietary information there.
And he said he was sorry but on the other hand my interest was this.
My interest is making sure that they have a lot of capital which they do.
Secondly that we don't -- bail out these banks with the taxpayer's money and I don't think that there's -- a chance of that happening -- JPMorgan Chase.
-- you've been very adamant about -- capital requirements and very interested in making sure their high enough to these banks don't get into trouble again that the taxpayers have to bail them out wet.
You know at senator you Ben act in office -- -- in the senate for about twenty years -- -- doing the math correctly have a lot of respect for you and what you've done.
But I think the American people might look at this hearing in say.
This congress asking questions about the ability to manage money.
When we have a trillion dollar deficit for the third year in a row and sixteen dollars sixteen trillion dollars that is in federal debt.
Just doesn't make a lot of sense doesn't go down very well how would you risk.
Bond.
Well I think that that's a good question a good observation.
Perhaps we didn't need this -- No one's lost money but it was I think was driven basically -- media interest.
And so forth.
JPMorgan didn't lose money I mean they lost money that they didn't they had capital coverage that's good.
We don't know what they were doing exactly we will find that out.
But.
I believe that we have bigger fish to fry we are hemorrhaging money up here we're recommending.
-- spending.
Billions of dollars each day we're losing it so to speak.
We're not looking after the taxpayer.
And we're just basically Europe we see Europe -- end of burden financially.
We're probably a year or so -- We'd better get our house in -- and what this hearing was about today was nothing compared to the problems facing this country you're absolutely right movement.
Boy am I can agree with you more there's there's trouble ahead if we don't change our ways.
Senator come back any time it was great having you on the show I appreciate it thank you --
