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Why Jamie Dimon apologized to Elizabeth Warren

New York
CNN Enterprise

JPMorgan Chase CEO Jamie Dimon testified on Capitol Hill Thursday for the second straight day. This time, he confronted his longtime critic Sen. Elizabeth Warren.

Warren started her line of questioning by asking what number of situations of fraud had been reported to his financial institution from clients utilizing Zelle, a preferred cost platform collectively owned by plenty of banks together with JPMorgan.

Zelle, Warren mentioned, has helped increase financial institution earnings whereas “defrauding” clients out of not less than half a billion {dollars}. Customers despatched $490 billion by means of Zelle in 2021, of which an estimated $440 million have been misplaced by means of fraud and scams, in accordance with Early Warning Providers, Zelle’s mum or dad firm.

Warren mentioned she had reached out to JPMorgan and different banks in July for a solution however had been “stonewalled” and acquired no info.

“You didn’t present any of the knowledge that we requested,” she informed Dimon within the Senate listening to. “Is that since you don’t hold monitor of when your clients report fraudulent Zelle transactions? Or is it since you do hold monitor and precisely what number of fraudulent transactions had been reported and also you wish to hold {that a} secret?”

Dimon mentioned, “I deeply apologize if we didn’t provide the numbers you requested for.”

The quantity of fraud for the service, he mentioned, is “comparatively small.” When Warren pressed for particular numbers, Dimon promised to get them to her by the tip of the day.

“Terrific,” Warren mentioned. “We’ll get it by the tip of the day as soon as no person’s right here to speak about it.”

She additionally mentioned that when a buyer falls sufferer to fraud on the platform, they’re largely left to cope with the repercussions on their very own.

A JPMorgan spokesperson disputed the notion, saying in an e-mail that “we reimburse clients for unauthorized transactions reported in a well timed method, and likewise reimburse for transactions the place the patron is fraudulently induced into offering account entry credentials which can be then utilized by a nasty actor to make a cost.”

Dimon was joined within the Senate by Wells Fargo CEO Charles Scharf, Financial institution of America CEO Brian Thomas Moynihan, Citigroup CEO Jane Fraser, Truist CEO William Rogers Jr., U.S. Bancorp CEO Andy Cecere and PNC CEO William Demchak.

This isn’t the primary time Warren has gone head-to-head with Dimon. Final 12 months, Warren known as Dimon the “star of the overdraft present” and accused him of prioritizing earnings over struggling Individuals. “Your financial institution, JPMorgan, collects greater than seven occasions as a lot cash in overdraft charges per account than your opponents,” she informed him.

Dimon responded that Warren’s numbers have been “completely inaccurate.”

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