Senator Scott Brown (R-Mass.) is calling on JPMorgan Chase CEO Jamie Dimon to “impose financial penalties on responsible parties” after the company reported a $2 billion trading loss.
In a letter to Dimon, Brown noted that he supported the Dodd-Frank legislation and said “it’s been very frustrating to watch the continuing volatility of the financial markets.”
“Stronger leadership is needed on Wall Street,” Brown wrote. “And this $2 billion loss, while painful, provides a good opportunity to prove that compensation practices have truly changed as a result of the financial crisis.”
“I would also point out that if the recent $2 billion loss leads to a restatement of JP Morgan’s first quarter results, Dodd-Frank requires that any incentive compensation that would not have been awarded under the earnings restatement be subject to mandatory clawback, and a strict liability standard is imposed.”
Brown’s letter comes a after his main Democratic rival, Elizabeth Warren, called for the embattled CEO to step down. Warren made her splash on the national stage after working to establish the Consumer Financial Protection Bureau and has sought to paint Brown as a protector of Wall Street interests.
Dimon announced the trading loss last week, and he has since faced a hailstorm of criticism from members on both sides of aisle. The loss has triggered questions about the strength of federal banking regulations. Both the FBI and the Federal Reserve have said they will investigate the matter.