JPMorgan Chase CEO Jamie Dimon told Senate lawmakers Wednesday that he takes full responsibility for his company's massive trading losses totaling more than $2 billion.
Speaking before the Senate Banking Committee, Dimon explained the firm's trading program was designed to hedge against risk and that, although he knew about the program, he did not sign off on it.
"This portfolio morphed into something that, rather than protect the firm, created new and potentially larger risks," Dimon said. "We have let a lot of people down, and we are sorry for it."
JPMorgan is considered one of the world's strongest banks. But Democratic Sens. Charles Schumer of New York and Robert Menendez of New Jersey wanted to know what would have happened if the losses hit a weaker bank.
Dimon said the company plans to invoke a "clawback" to recoup money from the executives responsible for the losses.
"For senior people, which most of these people are, we can claw back even for things like bad judgment," he told lawmakers. "We can claw back any unvested stock. We can even claw back things like cash bonuses."
Dimon called the debacle an "isolated incident" that resulted in no impact to clients, customer, or taxpayer money.