By Peter Schroeder - 05/17/12 07:15 PM EDT
JPMorgan Chairman Jamie Dimon will testify before the Senate Banking Committee on his bank's multibillion-dollar trading loss.
The hearing is yet to be scheduled, but the head of the nation's largest bank agreed to testify after Senate Banking Committee Chairman Tim Johnson (D-S.D.) said he planned to invite him to Capitol Hill to discuss the firm's bad bet.
Johnson announced Thursday that the panel's investigation of the botched trade had "made it clear" that lawmakers needed to "hear directly" from the head of the bank.
The Banking Committee is currently set to hold two hearings on the implementation of the Wall Street reform law, which has been a dominant topic on Capitol Hill ever since JPMorgan announced it had lost at least $2 billion thanks to a complex bet on corporate debt. The New York Times reported Thursday the losses had actually climbed to $3 billion.
On May 22, the committee will hear from regulators at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) on the financial overhaul. The SEC is reportedly investigating the JPMorgan trade, and the CFTC is responsible for implementing new restrictions on financial derivatives, which played a key role in the bank's bad bet.
On June 6, the committee will hear from regulators with the Federal Reserve, Federal Deposit Insurance Corporation, Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and the Treasury Department.
"As part of these hearings, I have asked the appropriate regulators to be prepared to update the Committee on the recently reported trading loss by JPMorgan Chase," Johnson said in a statement.
The House Financial Services Committee has also announced it plans to hold hearings on financial regulations in the wake of the JPMorgan loss.
—This story was updated at 3:30 p.m.