During today's House Financial Services Committee hearing, Rep. Sean Duffy (WI-07) questioned J.P. Morgan CEO Jamie Dimon about the firm's recent $2 billion failed trade, market capitalization and whether the firm is Too Big to Fail.
Here are a few excerpts of the hearing:
Rep. Duffy on whether American taxpayers should assume the risk for failed trades, "Mr. Dimon, good morning. I think it's clear that we're not here because a private firm lost $2 billion. I think it's clear that we're here, that many of the American taxpayers are concerned when big banks go bad, they're left holding the loss. It's one of these philosophies, where we have capitalism on the way up, where you and your firm make a lot of money when you do well; and when you fail, we have socialism on the way down and the taxpayers bear the brunt of that loss."
Rep. Duffy on whether federal regulators can handle a bank as large as J.P. Morgan and how the Dodd-Frank Act does not solve the Too Big To Fail issue, "And that's why we sit here today, to make sure that taxpayers, taxpayers in Wisconsin, don't bear the loss of big banks on Wall Street. And so when we look at what's going on -- I mean, would you say that the regulators are capable of sufficiently regulating a bank the size of J.P. Morgan?"