"We have let a lot of people down and are sorry for it."
Those are the words of JPMorgan CEO Jamie Dimon in prepared testimony that he's expected to deliver in person Wednesday before the Senate Banking Committee.
Though he's sincerely really really sorry, Dimon also says that mistakes like the bank's multibillion dollar trading losses could very well happen again.
The Wall Street Journal's Deal Blog notes that today is the two-month anniversary of Dimon calling the losses a "tempest in a teapot."
Follow here for live updates from HuffPost's Mark Gongloff. A live video stream appears below.
06/13/2012 4:25 PM EDT
Jamie Dimon Cozies Up To Senators Before Testifying
Check out this video from Fox Business of Jamie Dimon shaking hands and shmoozing with Senators before his testimony (h/t Business Insider):
06/13/2012 4:23 PM EDT
@ hblodget :
The most important thing Dimon said was "we didn't understand the risks." Message is: If they didn't, no one does.
06/13/2012 12:17 PM EDT
And It's Over
Well, that sad circus is finally pulling out of town.
What have we learned?
1. Purple ties really bring out the blue in your eyes.
2. When throwing out bathwater, check to make sure there's not any babies in it.
3. Markets solve every single financial crisis they cause.
4. Jamie Dimon's God is an angry, jealous God.
5. Seriously, Jamie Dimon claims he feels bad about his bank's losses, but he really doesn't seem to feel the least bit sorry.
6. Dimon has not changed his mind one iota about regulation -- he still thinks it's pretty much all bad.
7. Congress is probably going to agree with him.
8. We will have more financial crises.
Thanks for playing, everyone. Let's be careful out there.
06/13/2012 12:12 PM EDT
In response to questioning by David Vitter (R-La.), Dimon finally says he thinks the Volcker Rule is just going to be too hard to get right and isn't even necessary at all.
Earlier in the hearing, he was much more hedged about this. He earlier said he didn't know if the Volcker Rule would have prevented his bank's loss in credit derivatives.
Now he's basically saying it wouldn't have.
06/13/2012 12:07 PM EDT
The Markets Solved The Financial Crisis
Dimon also said that markets, not regulations, fixed up all the problems that caused the last financial crisis. Yes, markets.
06/13/2012 12:03 PM EDT
@ grossdm :
Jamie Dimon says JPM isn't in the hedge fund business. Except for the hedge fund business it owns. http://t.co/RYflAer5
06/13/2012 12:03 PM EDT
Liquidity Warning: Everybody Drink
Earlier, Dimon trotted out all of his other old arguments against regulation, saying the financial system provides liquidity that makes finance cheaper for the world and only occasionally results in massive global financial meltdowns.
He also warns we risk throwing it all away unless we spend years and years thinking about and watering down regulation:
"We have the widest, deepest and best capital markets in the world," he sobbed. "It would be a shame to shed that out of anger." See Baby, Bathwater.
06/13/2012 12:00 PM EDT
About That Bloomberg Story...
Merkley is also the first senator to ask about Bloomberg's reports that Dimon pushed the CIO to take bigger risks.
Dimon, obviously angry with Merkley, dodges the question with a lot of numbers about how non-risky the CIO's overall portfolio is.
Merkley asks again, and Dimon says "I don't believe everything I read, I hope you don't either."
Asked a third time about it, he mutters something about not knowing what he's talking about, how he'll have to get more detail.
06/13/2012 11:57 AM EDT
Jeff Merkley (D-Ore.) swings the Old Testament hammer at Jamie Dimon:
"If you had applied Old Testament justice in 2008, JPMorgan would have gone down, and you would have been out of a job."
Dimon is visibly angry.
06/13/2012 11:56 AM EDT
Baby-Bathwater Metaphor Appears: Everybody Drink
Dimon is now in full regulation-bashing mode, bringing out his old warning that we don't "throw the baby out with the bathwater" when we regulate banks.
In this metaphor, which Dimon has used often in the past, the "baby" is the magnificent U.S. financial system, and the "bathwater" is Bear Stearns, or something like that.