For 2302, an example of last week's discussion of committees, especially their oversight authority. Recent trading losses led the Senate Banking Committee to compel testimony from Jamie Dimon, JP Morgan's president and CEO. At issue is whether the trades involved undue risk with depositors money. These were the types of activities that helped lead to the financial crash in 2008.
Video of the entire testimony can be found here, and the opening statement of the chair here. You can follow the testimony through this liveblog.
Part of the purpose of the testimony was for members of the Senate to determine whether regulations limiting such activities needed to be strengthened. Special attention focused on the merits of the Volcker Rule rule, which is meant to limit the ability of banks to trade with depositors funds in a manner that does not benefit the institution as a whole. Support and opposition for the rule - as well as the general demeanor of senators towards Dimon, hinge on ideological dispositions towards regulations. Democrats support the rule and argue that the regulations are necessary in order to limit careless trading, Republicans oppose them and claim that the rule is an unnecessary infrngment on financial innovation and the free market in general.
Here are general comments on the testimony:
- John Stewart thought the committee went easy with Dimon.
- The CRP points out that JP Morgan Chase has contributed plenty to members of the committee.
- Bill Moyers sees evidence of a revolving door between committee staffers and the lobbyists representing the industry.
