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FBN’s Charlie Gasparino on why regulators will be the focus of J.P. Morgan CEO Jamie Dimon’s second day of testimony.
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-- let's get back home JPMorgan Chase CEO Jamie Dimon returns.
For another round of grilling on Capitol Hill just what can we expect in round to -- About the losses that the banks sustained because of a single trader in London office Charlie Gasparino is here with the exclusive details -- -- before we get into that I like this skew that figure question yes -- does the Internet -- people smarter or dumber.
-- I think -- -- right well I mean Google helps because everybody Google step but he that -- she writes that the problem that is so some of the clowns on my Twitter page I.
Everybody should go and see somebody's out.
-- 8 but down here where I'd I've become -- -- actually engaged these -- so why I don't know like you know was open somewhat to access to our clients so.
See Gasparino.
That seem to have access that's it all right please -- me some more I mean these guys are so dumb.
And -- -- the most from a -- so women arm may be are smarter than men.
Go on right.
Anyway let's get back to this story which will be big story tomorrow I mean will we should back -- limited.
Seven hearings this week into the London will trading -- by the way it's probably wasn't one trader.
The group of traders he was may be the biggest of -- -- but it was under the direction of obviously achieve -- top person at the at the company Ina -- is no longer there.
But last week we have the senate hearings into this big -- -- two before four billion dollars at JPMorgan in the chief investment officers.
Unit in London.
And it featured Jamie diamond right senate hearings featured Jamie -- tomorrow's going to be a little different it's gonna feature.
The top regulators have missiles to catch this thing and Jamie -- first you'll see Mary Schapiro.
To see some from the FDIC I don't know these guys names they're not exactly household names but we get -- is SEC chair when I get a seat ahead of the FDIC.
The head of I think the CFTC that -- -- there's going to be there.
The OCC.
And the -- someone from the -- -- -- all the major regulators are they will be featured first.
And this is what we now and we're gonna get more later on today because I should point out.
Members still have a returned the food from the weekend so we're gonna get what you -- book right now a snapshot we guided that this thing is going to be heavily.
Look heavily at regulations and the failure of regulation particularly the new regulations Dodd-Frank.
To big financial reform bill that was host a -- all the stuff.
Why it didn't catch -- when you had people on site.
Jamie Dimon has been on record he has.
I think -- -- hundreds of regulators are so I don't I don't know how we get -- hundred we should point out that the -- in the testimony just sought to they have for people's sites found.
Maybe the other ones that fifty.
But who knows maybe the Fed has a lot of people well I have to say some -- Sheila -- of the FDIC is joining David -- enemy in the next hour we're gonna ask her all of these questions -- -- -- about how grant the FDI ask her how the FDIC was interesting when you looked at the FDIC's.
I -- think it chair -- acting chair the FTSE look at it with his statement and I just stated.
He really doesn't say -- they missed it they said why we need all these laws never really said having the -- and I'll tell you that'll be key to tomorrow's hearings they're gonna grill.
Those regulators on how they missed it you know -- what -- and we need all this complexity would Dodd-Frank overlapping agencies no one really taking charge.
Is that the problem that failed that that led to this failure of regulation.
The fact is all these guys read about the wonder -- trading loss in the newspaper it's two years later.
The probably go to Dimon and grilled on the same stuff.
-- -- was it went last week people who gave some hints which I think they picked up on it that house that that there's some people and and that and I on the house financial services committee.
Which will be tomorrow's hearings remember last week was -- This is Republicans Republicans don't like Dodd-Frank so you'll see a lot of this.
About Dodd-Frank and -- basically said.
You have a lot of complexity to regulation the best thing they did it on the Dodd-Frank was very circuit and force us to raise more capital so we have a fortress balance sheet but guess what.
There's so much complexity -- -- no one knows what they're doing.
I'm paraphrasing that basically said I I was I was in the it was in the year.
-- you'll see them I think ruled down on that tomorrow what do you mean by that complexity give us some more examples.
And try to relate it back to this -- so it's kind of -- think.
Last week was more about you -- -- some of the senators they grilled him on some of the statements that were anti regulation that was Menendez who rule one of them said.
You know did you really say that Basil three the new -- three the new.
Do -- capital requirements global care programs -- on American.
And he didn't really -- kind of had explain what he really meant by that you'll see it differently this time those -- Democrats Republicans say okay.
Why is Basil three bad for us give us the examples about what it's doing how it's hurting us and -- -- -- was examples on how Dodd-Frank.
May have been the result of this it's interesting they may try to pin this.
On Dodd-Frank.
On the complexity that it introduced.
And they have a pretty good case listen if you have hundreds of regulators and -- reading about you know we should point out the won did well office.
We don't cover a lot that this is a big part of the bank this isn't some insignificant office -- is a major -- weren't part in the London on whether they ask how do you how are you investing money.
For your internal portfolio every thanks Scott and it's huge but -- Sheila Bair has some answers forecasts I'll be I'll be -- opportunity.
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