The CEO of JP Morgan Chase & Co., James Dimon, is testifying before the Senate Banking, Housing and Urban Affairs Committee on Wednesday after a $2 billion trading loss in early May.
He told Congress that the massive loss can be blamed on traders misunderstanding the bets they placed and insufficient risk controls, according to CNN Money.
Dimon, who is also chairman of the nation's largest bank, was invited to speak before the committee in May. The hearings are investigating the loss from a regulatory angle. JP Morgan made its multibillion-dollar blunder due to "negative carry trades," according to CNN Money.
The hefty trading loss led to the departure of JP Morgan's chief investment officer and forced Dimon to apologize for the "terrible mistake." Days later, he spoke to shareholders at the company's annual meeting and had his $23 million pay package approved - the same shareholders who have seen the company's stock decline by more than 14% over the previous five trading sessions.
Ironically, the shareholders used this kind of meeting regularly after the 2008 financial crisis to push reform agendas because of increased scrutiny directed at the nation's largest banks. Yet, after the loss, shareholders still approved Dimon's $23 million in compensation as chairman.
The FBI said May 16 that it was opening a preliminary investigation into the loss.
In 2010, Dimon was referred to as "America's least-hated banker" in a New York Times article. So what happened?
Here's a look at Jamie Dimon and the timeline leading up to his testimony in Congress.
Who is Jamie Dimon?
-Born: March 13, 1956; New York
-Parents: Theodore, a stockbroker, and Themis Dimon
-Sibling: A twin brother, Theodore "Teddy"
-Spouse: Judith "Judy" Kent Dimon (May 1983-present)
-Children: Julia, Laura and Kara Leigh
-Education: Tufts University, B.A. 1978
Harvard University, M.B.A. 1982
-1982-85: Assistant to President Sandy Weill at American Express.
-1996-97: Chairman and CEO of Smith Barney.
-1997-98: Co-chairman and co-CEO of Salomon Smith Barney Holdings.
-1998: President of Citigroup. Dimon is forced out of the company after a falling-out with longtime mentor Weill.
-2000-04: Chairman and CEO of Bank One Corporation.
-2004: Becomes president and chief operating officer of JPMorgan Chase & Co. when it merges with Bank One Corporation.
-December 31, 2005: Assumes title of chief executive officer and president at JPMorgan Chase & Co., effective January 1, 2006.
-December 31, 2006: Named chairman of the board at JPMorgan Chase & Co, effective January 1, 2007.
-May 10, 2012: On a conference call, reveals that a trading portfolio that was designed to help JPMorgan Chase hedge its credit risk lost $2 billion and could lose $1 billion more.
-May 15, 2012: Apologizes to JPMorgan & Chase shareholders at the annual meeting. Shareholders approve Dimon's $23 million pay package, and preliminary results show that only 40% support a proposal that calls for the appointment of an independent chairman.
-May 17, 2012: Senate Banking Committee announces that Dimon has been invited to appear before the committee at hearings looking into the JP Morgan trading losses from a regulatory angle.
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