JPMorgan Chase CEO Jamie Dimon plans to testify before
Congress this week about his firm’s $2 billion trading loss. According to Bloomberg's Best his Wall Street
colleagues don’t understand why.
“Occasional losses are inevitable,” said Blackstone Group LP
(BX)’s Stephen A. Schwarzman, 65, CEO of the largest private- equity firm.
“Publicly excoriating JPMorgan serves no purpose except to reduce people’s
confidence in the financial system.”
The loss has sliced $27 billion from JPMorgan’s market value
since the May 10 disclosure, while triggering at least five federal probes and
two Capitol Hill hearings scheduled with Dimon. It also renewed debate about
whether curbs on trading by bankers were tightened enough after their wrong-way
bets pushed the system to the brink of collapse in 2008….
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