JPMorgan Chase and its CEO, Jamie Dimon, have worked tirelessly to put the billions of dollars in “London Whale” trading losses behind the Wall Street firm as it works to restore its once sterling reputation.
But this week, there is a land mine on its road to redemption.
On Friday, the Senate’s Permanent Subcommittee on Investigations will hold a hearing on a highly anticipated report on the bank’s mismanagement of these derivatives trades — putting the firm through Congress’s most strenuous Wall Street wringer.
“When you can drag somebody’s rear end in front of a congressional panel, that’s pretty daunting,” said former Sen. Norm Coleman (R-Minn.), who chaired PSI from 2003 to 2007. The subcommittee “is respected, maybe feared at times.”
The panel has earned a reputation for digging deep into complicated financial matters and exposing embarrassing information on big companies, whether it’s Goldman Sachs employees pushing deals to customers they disparaged in internal emails, HSBC not safeguarding against drug lords being able to use the bank, to launder money or big banks helping investors to avoid paying taxes on dividends.
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