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But if you -- -- bridge -- -- JPMorgan's -- lots up on Capitol Hill you are wrong my with that I -- -- clearly gonna keep telling the best house financial services committee is planning additional hearings later this summer.
-- addressed the matter Charlie Gasparino joins us now us.
With the latest.
It'll -- -- to sort of a back door channel they're gonna hold hearings on Dodd-Frank on the finance reform law they're gonna look at regulatory failures of Dodd-Frank.
Guess what they think the biggest regulatory that the -- the JPMorgan London well loss of that's clearly gonna happen this summer's going to be pretty interest and they're gonna look at.
-- the -- Dodd-Frank.
You know as -- as a as an issue for businesses how much it's costing businesses but also the notion that it was a really toward failure we're getting this from sources close to the house financial serves committee.
And here's the key thing Tim Geithner will be called to testify journeys hearings we around Geithner will be asked for -- we understand specifically.
About the London will lost now why would Geithner be asked about this.
Geithner as treasury secretary's head of something.
Known as a systemic risk council.
Or something like that freight -- remember that government I think -- -- to be the coordinating agent of every regulator in the world police according to be in the US.
That regulating agency obviously missed something big in the just in the London will trading laws and that's -- -- -- Geithner that's where the questions going to be put to Geithner this summer's.
That's one of the ones we are listing how many regulators when you weren't -- power inside but will stomach risk organization or whatever it thank you -- -- hideaway that that that that is a term of art.
-- it's known as add on Capitol Hill there's a more.
Formal name that it's -- you know the council above -- -- by can't exactly remember exactly what it is but it's known in Capitol Hill the people that we're talking to as a systemic risk council.
And not quite a regulator but -- coordinating mechanism to make sure.
Regulations get done right -- one of the key things I think you'll see house Republicans and they control this committee in this is important committee run by Spencer Bachus look at.
Is you have all these regulators.
A lot more than -- stored before the financial crisis.
There is so much.
Lack of coordination among them that you really don't know about the London will trading positions -- risk taking that's going on.
Over in London in the CIO off the subject of JPMorgan Chase -- -- read about the newspaper now we should point out that.
What the -- the chief investment officer that's where this loss emanated from.
What they were taken positions that were merely hedge or or real risk positions this is not -- -- that the important part of the bank this is something.
If you look at it trading desk to proprietary trading desk that's one thing you would think regulators look at.
But the pool of money that any bank -- -- their investment portfolio is huge especially these big banks you would think there was a -- some some follow up on it.
When people what were they doing as did anybody ever ask a question.
We do know from the last hearings that financial services committee had.
That so I think ahead of the OCC I can't remember the gentleman's name little -- was mentioned somebody would like more granular detail on risk taking.
Well guess what want to ask about -- that granular detail.
Go there this is a big part of the bank it's -- 250 billion dollar portfolio.
Ask about it because every bank has one of these things and I'd you wonder if they actually knew the pool like the pool money existed in the first place but in any event.
We're gonna get some more hearings on this it's not the last -- -- of the London trade trading will trading was on Capitol Hill.
I don't Dimon did a pretty good job.
It's unclear if he's gonna be called back I doubt this committee will -- -- back.
It's unclear whether -- -- bankers of this thing member daddy this this this hearing is under the auspices of Dodd-Frank.
The supposed to do semi annual series of Dodd-Frank.
The Treasury Secretary supposed to be -- so he'll -- be there he's -- he's compelled on the law.
On the Dodd-Frank law they're gonna look at -- and we should point out that nearly half a little of the rules of Dodd-Frank.
Are not have not been written yet including Volcker that's going to be discussed at this but the big thing is this for a house Republicans.
You know for better or -- they do have -- actually right they don't like don't like Dodd-Frank ever Republicans vowed.
If they if they had a chance to to basically kill it.
You know if Mitt Romney is what the president and the Republicans think the seventy -- they they -- to kill it.
They're gonna point out -- short company Cummings they believe -- shortcomings lack of coordination.
Which showed in this JPMorgan -- and of course regulatory burdens for banks and businesses.
I wonder how much of this is wheels spinning considering we're approaching election.
While it worth doing going told his -- I wouldn't say hearings and I don't know I mean what if someone else takes the White House in the -- and do we start all over well.
I I I do I wouldn't go there.
I would say this OK you know there is if this is a political season no doubt.
You're gonna see Republicans attack.
Regulation as a drag on business -- -- and and and that and that and essentially that this administration has been feckless and carry out.
It's regulatory -- paid which -- they believe that this.
This this London will lost sort of exemplifies and Jamie Dimon says he has hundreds of regulators in his office.
And that's gonna like they'll get they failed to get well they have what kind of like just like -- orb chart who was -- where were they from.
What could they have seen well I mean to really Henderson and I will do it next I mean I mean -- hearing I don't know but I will say this I remember this hearing.
Featured Geithner that's going to be the key witness and he's going to be asked point blank as the coordinating agent.
How did you miss this movement going to be the question I think I think that is something worth watching we will do that Indian Charlie -- are and its.