Wall Street is bracing for a rocky ride Monday. JPMorgan's $2 billion loss renewed American investors fear in the big banks and their risky bets.
After the financial collapse of 2008, there was a call for reform on Wall Street so risky bets would no longer threaten the financial system. But Wall Street appears to have done it again.
Last week JPMorgan, the nations largest bank, announced that $2 billion had been lost in only six weeks.
JPMorgan Chase CEO Jamie Dimon said the bank accepts responsibility for its mistake.
"We took too much risk. The strategy was badly vetted and badly monitored, and it should have never happened," Dimon told NBC's "Meet the Press."
Three top executives involved in the failed strategy are expected to leave the bank this week, including Ina Drew, the highest paid woman on Wall Street.
Many American's were just beginning to regain ground lost in their 401K's. But JPMorgan's announcement led to Wall Street's lowest week this year.
"This is just a huge throwback to the two years of trying to regain the investment publics trust in the financial system," Teddy Weisberg of Seaport Securities said.
JPMorgan itself is not expected to suffer any major loses. Even though the bank could lose another $1 billion, it's still set to gain around $4 billion for this quarter.
But the mistake will impact the debate over financial regulation in Washington.
As soon as the big banks began to recover from their first collapse, executives began fighting to loosen the new regulations put in place.
Now that fight could be in jeopardy.
"The price will be that they will lose their battle in Washington to weaken the rule," said Senator Carl Levin
Dimon is expected to face more scrutiny at a shareholders' meeting tomorrow in Florida. A vote calling on the bank to adopt an independent chairman is expected.