The CEO said he was "dead wrong" when he dismissed a trading loss from the London office as a "tempest in a teapot" before he learned the bank made a $2 billion bad bet. He hinted that those responsible may have pay taken back from them in clawbacks.
"It's likely that there will be clawbacks," Dimon told the Senate committee last week.
Dimon told the committee he was misinformed about a strategy with a synthetic credit portfolio that was meant to hedge risks but "ultimately resulted in even more complex and hard-to-manage risks." This led to trades, announced by JPMorgan on May 10, that may have led to losses as high as $5 billion, according to the Wall Street Journal. A week later, the FBI said it opened a routine inquiry about the trading losses.
In a conference call on April 13, he peremptorily dismissed worries over the trades made by JPMorgan's London office as "a tempest in a teapot."
"When I had made that statement, I was dead wrong," Dimon told the Senate committee. He said he had "the right" to rely on information from the company's chief investment officer, Ina Drew, and her office in London.
"I was assured by them they thought this was an isolated small issue and that it was not a big problem," Dimon said last week.
ABC News' Alan Farnham, Matthew Larotonda, and Sunlen Miller contributed to this report.