Mr. Levin cites a "massive portfolio riddled with risk," a "runaway train of derivatives trading" and regulators who failed to act. Together, he says, these facts resemble what happened in the financial crisis.
Mr. Levin positions the hearing Friday as an opportunity to explore "the hidden world of high-stakes derivatives trading by big banks." He accuses JPMorgan of misleading and mischaracterizing the "nature of the whale trades."
JPMorgan's chief investment office, which manages excess deposits for the bank, was once a relatively unknown unit in the bank.
Mr. Levin points out the exponential growth of the portfolio in the chief investment office. "In just a few months during 2011," he says, the credit portfolio grew from "a net notional size of $4 billion to $51 billion."
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