No close encounters of the Dimon kind today, but we get our first sworn testimony on all matters #FailWhale, when Mary Schapiro and Gary Gensler open their mouths at 10:00 am, and confirm what everyone knows - that the TBTF's prop trading desks are alive amd well, that the Volcker Rule was one big misdirection, and most importantly, that nobody has any idea what multi-billion trades the big banks engage in until it is far too late, and even then they refuse to give their investors a snapshot of how big the real losses are.
Witnesses on deck:
Honorable Mary Schapiro
Chairman
U.S. Securities and Exchange Commission
Honorable Gary Gensler
Chairman
U.S. Commodity Futures Trading Commission
What to expect:
Securities and Exchange Commission (SEC) Chairman Mary Schapiro and Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler will testify on the implementation of the derivatives regulation before the Senate Banking Committee.
According to the committee website, the panel will look at "reducing systemic risk and improving market oversight." The Committee is also expected to question both witnesses about the oversight of J.P. Morgan Chase and the intricate trades that combined in a $2 billion loss.
The reform stems from the 2010 Dodd-Frank financial oversight law, which orders an overhaul of the unregulated $600 trillion derivatives markets, a leading cause of the 2008 financial crisis.
Treasury Secretary Timothy Geithner stated during an event covered by C-SPAN that the mandate required by the Dodd-Frank Act, including new capital requirements, would "strengthen the ability of banks to absorb losses" like those at J.P. Morgan.
Live CSPAN webcast after the jump:
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A full background on what should have been known ahead of JPM's prop "Fed wannabe" desk blowing itself up: