JPMorgan's Dimon Says He'll Testify Before Congress

(Reuters) -- JPMorgan Chase Chief Executive Jamie Dimon agreed on Thursday to testify before Congress over the bank's recent trading losses, which have ignited a political debate over whether large U.S. banks need to be reined in by regulators or new laws.

U.S. Senate Banking Committee Chairman Tim Johnson, D-S.D., said in a statement on Thursday that his panel will invite Dimon to appear before Congress.

He did not say on what date the committee wants Dimon to testify but that it would follow a set of hearings with regulators on the trades and efforts to implement Wall Street reforms that will conclude on June 6.

As always, we will continue to be open and transparent with our regulators and Congress, JPMorgan spokesman Kristin Lemkau said in a statement. She said Dimon will appear before the panel.

Last week JPMorgan announced that it has suffered at least $2 billion in losses due to trades that went bad.

Johnson said committee staff had been discussing the losses with regulators and the bank since they were disclosed and have determined Dimon should testify.

Critics of Wall Street have pointed to the trades as evidence that reforms called for under the 2010 Dodd-Frank financial oversight law should be strictly enforced once finalized.

Two regional Federal Reserve presidents have said the losses underscore the point that banks like JPMorgan are too big to manage and should be broken up.

These reactions are being dismissed by some analysts and lawmakers as an overreaction since the bank's stability has not been put at risk.

Even with this loss, I believe they're one of the most profitable financial institutions in the country, and unless the facts are diametrically different from what we've heard, there is no risk from this loss to depositors or to tax payers, House Financial Services Chairman Spencer Bachus, R-Ala., said on Wednesday.