JPMorgan Chase chief executive Jamie Dimon arrives Wednesday to testify...

JPMorgan Chase chief executive Jamie Dimon arrives Wednesday to testify before the Senate Banking Committee on Capitol Hill. (June 13, 2012) Credit: AP

JPMorgan Chase chief executive Jamie Dimon told Congress Wednesday that senior bank executives responsible for a $2-billion trading loss will probably have some of their pay taken back by the company.

Under bank policy, stock and bonuses can be recovered from executives, even for exercising bad judgment, Dimon told the Senate Banking Committee. The policy has never been invoked, he said, but he strongly suggested that it will be.

"It's likely that there will be clawbacks," he said.

Among the most likely candidates would be Ina Drew, JPMorgan's chief investment officer, who left the bank days after Dimon disclosed the loss on May 10. Drew oversaw the trading group responsible for the $2-billion loss.

Dimon, under close questioning about his own role in setting up the investment division responsible for the mess, declared: "We made a mistake. I'm absolutely responsible. The buck stops with me."

The trading loss, disclosed May 10, has raised concerns that the biggest banks still pose risks to the U.S. financial system less than four years after the financial crisis in the fall of 2008.

Dimon's reputation for cost-cutting and perceived mastery of risk, particularly during the crisis, earned him respect in Washington. JPMorgan Chase weathered the crisis with relatively little damage.

At every turn before the committee, Dimon responded easily and in rapid-fire style to questions. He sounded notes of contrition -- "We should have gotten it earlier" -- but also defended the bank and his own criticism of some financial regulation.

Other than a few critical jabs from a couple of Democratic senators, the panel's treatment of Dimon was a gentle contrast to that received by other Wall Street executives in recent years on Capitol Hill.

Get the latest news and more great videos at NewsdayTV Credit: Newsday

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