The hearing examined the findings of a 300 plus page bipartisan Subcommittee report involving derivative trading conducted in the London office of the largest U.S financial holding company -J.P. Morgan Chase. Losses resulting from these trades are expected to exceed $6 billion. The report also revealed a a corporate culture at J.P.. Morgan that piled on risk, hid loses, disregarded rick limits, manipulated risk models, dodged oversight and misinformed the public.
Subcommittee Chairman Levin, along with ranking member, Senator McCain,established a lengthy hearing record by examining witnesses from J.P. Morgan and its’ principal U.S.. financial regulator, the OCC. Although J.P. Morgan could withstand these huge losses, the hearing provided a factual case study of a large firm intent on manipulating financial positions and public relation efforts.