Congressional investigators have summoned current and former top executives of JPMorgan Chase, along with three regulators, to testify at a hearing Friday on the bank’s multi-billion trading loss.
Jamie Dimon, the bank’s powerful chief executive, has not been called to testify, however.
The Senate Permanent Subcommittee on Investigations, led by Senator Carl Levin, will release a report detailing its findings into the trading blunder before the hearing.
Doug Braunstein, who was the bank’s chief financial officer at the time of the losses, will appear. The committee has also called Ashley Bacon, the bank’s acting chief risk officer, Michael Cvanagh, co-head of the corporate and investment bank, and Peter Weiland, who was in charge of risk management for the chief investment office, the unit at the center of flawed trade.
Ina Drew, who had led the chief investment office, will also testify at the hearing. Ms. Drew, the most notable casualty of the trading losses, resigned from the bank last May.
Both Mr. Dimon and Ms. Drew have been previously interviewed by members of the subcommittee.
The report and the hearing will swing another spotlight on the troubled trading bet at a time when the bank is trying to move beyond it. Since first revealing the losses in May, the bank has clawed back millions in compensation from the traders at the heart of the losses. Mr. Dimon appeared before Congress twice to account for the failed bets. And in January, JPMorgan’s board also cut Mr. Dimon’s annual compensation by 50 percent.
The subcommittee, which has been examining potential problems with how the bank alerted investors! and regulators about the trading losses, also asked several bank regulators to testify.
Thomas Curry, the comptroller of the currency, will testify. Michael Sullivan, deputy comptroller for risk analysis at the comptroller’s office and Scott Waterhouse, who is the comptroller’s examiner-in-charge at JPMorgan, are also scheduled to appear.
Beyond the immediate investigation into the losses, the hearing is expected to augment support for regulations like the Volcker Rule that restrict risky trading.
Mr. Levin, a Democrat from Michigan, has been as a fierce advocate for reining in the trades banks make with their own money.
The subcommittee’s investigation follows the bank’s own examination, led by Mr. Cavanagh. In its inquiry, the bank combed through thousands of e-ails and phone calls betwen traders. Ultimately, the bank concluded that executives within the chief investment office were ill-equipped to deal with the increasingly complex trades as the unit took on more risk.
The unit, which had offices in London and New York, evolved from a sleepy operation to a rich vein of profits for the bank.
Regulators haven’t escaped scrutiny for the trading losses. In some instances, the subcommittee has found, some bank employees resisted initial requests from regulators who were trying to get a more detailed picture of how the risk modeling at the chief investment office, according to several people briefed on the matter.
