The Senate's Permanent Subcommittee on Investigations to hold a hearing this Friday, 3/15.

[ by Melanie Gretchen ]

JPMorgan Chase's $6 million trading loss will be in the spotlight at Friday's Senate hearing, with a witness list that is expected to include current and former top executives of JPMorgan Chase, and 3 regulators.  JPMorgan Chairman and CEO Jamie Dimon has not been called to testify.

In advance of the hearing, a report on the London Whale trading loss that is based on a probe by the Senate Permanent Subcommittee on Investigations - chaired by Senator Carl Levin (D-MI).  It is said that this report contains many more disclosures than a report that JPMorgan released, based on its own internal investigation.

What to Expect. Here's witness line-up for Friday:

• Doug Braunstein: CFO at the time
• Ashley Bacon: acting CRO
• Michael Cavanagh, co-head of the corporate and investment bank.  [Mr. Cavanagh headed up the task force that conducted the bank's internal investigation.]
• Peter Weiland, formerly in charge of risk management for the chief investment office, the unit at the center of flawed derivative trading strategy.
• Ina Drew, former head of the chief investment office, who resigned last May and who will testify for the first time in public.  [Ms. Drew accepted blame for the London Whale losses.]

The subcommittee also invited regulators to testify on potential problems with the manner in which JPMorgan alerted investors and regulators about the trading losses.  The investigators invited to testify are:

• Thomas Curry: comptroller of the currency
• Michael Sullivan: deputy comptroller for risk analysis at the comptroller’s office
• Scott Waterhouse: the comptroller’s examiner-in-charge at JPMorgan, are also scheduled to appear.

Jamie Dimon's Prior Testimony.    Last June, Mr. Dimon, testifying before the Senate Banking Committee, said that he knew the trades were losing money, nevertheless, relied on executives' word that the troubles were under control and that losses would taper off.

Missing From the Hearing.   It's unfortunate that Senator Elizabeth Warren (D-MA) is not a member of the Permenant Subcommittee and, therefore, will not be asking any questions.  She has quickly assumed a reputation for asking direct and difficult questions, then taking her respondents to task when their answers dance around the issues.

For further details, go to [Dealbook, 3/13/13].