Prior to the May 10 revelation of the CIO’s trading losses, Dimon had been lauded as one of the best risk managers on Wall Street. That reputation gave his voice added weight as he became one of the leading opponents of several aspects of the Dodd-Frank Act, most notably its proprietary trading ban known as the Volcker Rule.
Because he led the opposition to strict regulations, senators who support such measures are likely to take the chance to return fire at Dimon.
“I think he’s going to go in there and take his lumps,” said Ronald Colombo, a professor at Hofstra University School of Law.
Democratic senators in particular are likely to hammer away at whether Dimon has changed his view on regulation.
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