Jamie Dimon, the chief executive of JPMorgan Chase, during a hearing on Capitol Hill about financial markets, in Washington, April 3, 2008.Doug Mills/New York Times
JPMorgan Chase & Co's recent trading losses are an isolated incident and the bank is expected to be "solidly profitable" in the second quarter, Jamie Dimon, the bank's chief executive, will tell the Senate Banking Committee on Wednesday.
Mr. Dimon will tell the committee the bank feels terrible about the trading debacle, while emphasizing the losses will only hurt shareholders, not taxpayers, and the bank maintains a "fortress balance sheet," according to his prepared testimony.
"While we can never say we won't make mistakes - in fact, we know we will - we do believe this to be an isolated event," Mr. Dimon will say, according to his testimony released by the bank on Tuesday.
Last month, JPMorgan announced that a hedging strategy had gone awry and produced at least $2-billion (U.S.) in unexpected trading losses.
Mr. Dimon in his prepared testimony did not provide an updated estimate for the losses.
Mr. Dimon is contrite in his testimony and says the bank did not have proper risk protections in place in the Chief Investment Office where the losses occurred.
He makes clear, however, that the bank remains in solid shape.
"Our fortress balance sheet remains intact," he said.