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JPMorgan CEO says he was 'dead wrong' about trading risk


JPMorgan Chase Chairman and Chief Executive Officer (CEO) James Dimon .


Eric Piermont

JPMorgan Chase CEO Jamie Dimon admitted Sunday he had been “dead wrong” to dismiss concerns about the bank’s $2 billion trading loss.

In an interview that aired Sunday on NBC’s Meet the Press he said "we got very defensive. And people started justifying everything we did."

Dimon added "we told you something that was completely wrong a mere four weeks ago."

The loss has given regulators new arguments for stricter oversight on big banks, requiring them to hold more capital, Reuters reported.

Chief Investment Officer Ina Drew is expected to resign this week.

Meanwhile, Dimon's reputation has been severely damaged over the last few days, according to the Associate Press. Previously known for his aversion to risk and for keeping JPMorgan strong enough to bail out Bear Stearns and Washington Mutual - his credibility is now on the line.

More from GlobalPost: JPMorgan admits shock $2BN trading loss

The New York Times said the Securities and Exchange Commission has opened a preliminary investigation into JPMorgan's accounting practices and public disclosures about the trading loss. Regulators first learned about the activities in April.

"We know we were sloppy... regulators should look at it" Dimon said.

Dimon is scheduled to speak again Tuesday at the company's annual meeting in Tampa, Florida.

Over the last few days, the bank fell $15 billion in market value in trading and its credit rating was downgraded, Reuters reported.

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